RELATIONSHIP BETWEEN INVESTMENTS AND PERFORMANCE OF INSURANCE COMPANIES LISTED ON THE NAIROBI SECURITIES EXCHANGE
Journal Title: International Journal of Marketing and Technology - Year 2017, Vol 7, Issue 5
Abstract
A business that is not profitable cannot survive and the management of a company‘s investments is an essential function of this profitability, which directly affects shareholder value. This study aimed at identifying the relationship between investments and performance of listed insurance companies on the Nairobi Securities Exchange (NSE). The study examined investments in properties, associates, government bonds and commercial bonds as a ratio to total assets. Performance of the listed insurance companies was measured by return on investment (ROE) which was calculated as net profit after tax divided by net assets. Secondary data that was obtained by document review was used. The data was analyzed using statistical package for social science (SPSS). Descriptive statistics, correlation analysis and regression analysis were carried out on the extracted data and the results showed that investments in properties had a positive relationship with performance of listed companies on the NSE while investments in associates, government bonds and commercial bonds had a negative relationship with performance. The general results indicated a positive relationship between investments and performance as measured by ROE of listed insurance companies in Kenya. In view of the findings, the researchers recommend that listed insurance companies should invest more in properties for the benefit of equity holders.
Authors and Affiliations
Mbang Abel Nkwain
Keywords
Related Articles
- EP ID EP19649
- DOI -
- Views 501
- Downloads 22
GLOBALISATION: IMPACT OF FII’S INVESTMENT ON STOCK INDICES, EQUITY AND DEBT MARKETS ,MARKET CAPITALISATION OF BSE AND NSE AND EXCHANGE RATES OF INDIA –(1999-2009)
After the introduction of New Economic Policy in India in 1991,foreign investment could face renewed vigour in terms of FII and FDI and hence ,the study analyses the impact of FII on Indian stock market indices of BSE...
Work / Life Balance In Corporate Sector
Life is moving very fastly. People are not able balance their work / life. They are facing a lot of problems in their daily life. Tight schedules, pressure of the boss to do the work into stipulated time, never ending...
Influence of E-commerce and its emerging innovations in banks
The study pursues to stretch an overall interpretation on E-commerce as an innovative hi-tech tool with distinct concentration of the emerging influence on customer relationship management (CRM) in banks. In present co...
PROFITABILTY ANALYSIS OF RELIANCE TELECOM LTD
Telecommunication is the assisted transmission over a distance for the purpose of communication. It typically involves the use of electronic devices such as the telephone, television, radio or computer. There are many...
Workers participation in management: Theory and practice
Worker‟s Participation drives industrial democracy to achieve ideal goals of organisations. Maxian ideology advocate the idea of worker‟s participation in management on purely ideological grounds. But some of contempor...