Factors Influencing the Financial Performance of Non-Life Insurance Companies of Pakistan
Journal Title: International Journal of Empirical Finance - Year 2015, Vol 4, Issue 6
Abstract
Today insurance industry is being built-in into vast pecuniary sector and it acts as a vital sector for Pakistan’s economy. To maximize the wealth of owners is one of the key objectives of management of any company and it is desired by management to work for profit maximization of the organization. Current study scrutinizes the influences of precise estimators of organization (Size of firm, loss ratio, expense ratio, debt ratio, growth of premium and age of firm) on performance deputations by return on assets a measure of the profitability. To find the impact of firm’s specific factors on their return on asset the data is gathered from 24 non-life insurance companies of Pakistan from the period 2005-2013. The panel data techniques are employed to measure the impact on performance of non-life insurance companies. To extract their impact Hausman test is employed to decide whether fixed or random effect model is appropriate. The test guided us that fixed effect model is apt for current study. The findings of fixed effect model put forward that age and loss ratio proves significant in determining performance of non-life insurance companies of Pakistan. Present study is multipurpose for the administration of Pakistan’s insurance sector in shaping their future decision making process.
Authors and Affiliations
Umair Saeed, Nouman Khurram
Keywords
Related Articles
- EP ID EP27212
- DOI -
- Views 396
- Downloads 12
Credit Evaluation of Accepted Companies in Tehran Stock Exchange Using Topsis-Fuzzy Technique
The lack of having a proper tool for evaluating companies’ ability in paying debts is a reason which creates problem for managing credit risk. This study introduces Topsis technique for evaluating the risk of not payin...
Performance of Islamic Banks across the World: An Empirical Analysis over the Period 2001-2008
Our study analyzes cost efficiency of Islamic and conventional banks drawing on a sample of 233 banks in 17 countries from Africa, Asia, Europe and Middle East, over the period 2001-2008. We found an efficiency score o...
Frauds in the Nigerian Banking Sector: A Factor-Analytic Investigation
The study examines banking sector frauds in Nigeria, from 1994 – 2013, their causative factors and suggested mitigating measures. The secondary data for the period were analyzed using two models, with bank deposits (BD)...
Open-End Fund Performance Persistence: A Study on KC Libra Fund
In this paper, we investigate the performance persistence of KC Libra Fund over time horizons between 6 and 12 months based on a merged sample from the Lipper/TASS and CISDM databases for the time period from 2009 to 2...
Financing Small Scale Enterprises through the Banking Industry in Nigeria
This paper examines the impact of banking sector in providing financing to Small Scale Enterprises (SSE) in Nigeria using regression analysis. Results from the study reveal that the banking sector financing of SSE is n...