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 507
- Downloads 22
A Study on relationship between Project selection criteria and risk categories w.r.t infrastructure companies in Pune
Infrastructure is a broad concept linked to every facet of the economy and human life. There is no clear definition of infrastructure according to current usage of the term in India. But it is necessary to narrow down...
CUSTOMER RETENTION IN NATIONALISED BANKS IN ERODE OF TAMILNADU (WITH SPECIAL REFERENCE TO CURRENT ACCOUNT HOLDERS)
Problems related to customer services and customer satisfaction have been given high priority by even the high level of policy planners and this is one of the most important issues discussed at all levels. Based on the...
AN EMPIRICAL STUDY OF RECEIVABLES MANAGEMENT IN REAL ESTATE SECTOR OF INDIA
Financial performance of any firm is based on financial structure, working capital, and profitability. Working capital is considered to be lifeblood and controlling nerve centre of the business. It is the management of...
Marketing Theory and its Applications in the Healthcare Industry
This paper deals with Services Marketing principles with special reference to the healthcare industry. The focus is on the impact of technology on healthcare marketing as observed in some corporate specialty hospitals...
The Review for Web-Page testing And Quality Assurance
Testing is one of the critical processes in software development life cycle. It plays a vital role in the success of software product by enhancing its quality. Now days web-based applications are emerging and evolving...