The Effect of Claim Ratio and Solvency Margin Ratio on Tobin's Q with the Implementation of Risk Management as Moderation
Journal Title: Journal of Economics, Finance and Management Studies - Year 2024, Vol 7, Issue 09
Abstract
Insurance companies play a crucial role in risk management. This study highlights that the role of enterprise risk management as a moderator indicates that to enhance company value (empirical study on insurance companies listed on the Indonesia Stock Exchange (IDX)), effective risk management practices are essential. Insurance companies serve as a form of risk transfer. The analytical tool used is panel data regression analysis, which aims to analyse how a high claim load can lead to decreased profitability and how the Solvency Margin Ratio measures the financial capability of a company to cover the risks it assumes. This research demonstrates that risk management is necessary for insurance companies. The application of risk management acts as a moderating variable, meaning the impact of the Claim Load Ratio and Solvency Margin Ratio on Tobin's Q may vary depending on the level of risk management implementation.
Authors and Affiliations
Vincentia Wahju Widajatun , Tanti Irawati Mukhlis , Oliver Hasan Padmanegara,
Keywords
Related Articles
- EP ID EP745298
- DOI 10.47191/jefms/v7-i9-47
- Views 56
- Downloads 0
Size Company as Moderator the Influence of Rofitability and Leverage on Stock Return in Manufacturing Companies in Indonesia
This study aims to examine the effect of profitability and leverage on stock returns through the role of firm size as moderator. The Research population used manufacturing companies. There are 143 companies listed on the...
Determinant Analysis on the Female Labor Force Participation Rate in Eastern Indonesia: The Case of Central Sulawesi Province Between 2016-2021
This research aims to (1) examine the impact of the number of females aged 15 years and over (JWU), the provincial minimum wage (UMP), the average length of schooling (RLS), and economic growth (PE) on the labor force pa...
The Role of Brand Preferences As Mediadia The Influence of Brand Equity on Purchase Intention
This study examines the effect of brand equity on purchase intention through brand preference which was developed in one model. The population of this study is KFC customers in Malang City, and the population in this stu...
Dividend Policy as Moderating Variable on the Effect of Leverage and Profitability on Firm Value
Investors are very interested in the value of go public companies as a consideration in making investment decisions. Investors have the main goal to earn income or return on investment, one of which is dividends. The cap...
Can Online Commerce Help SME Owners in the Wood Industry Weather the COVID-19 Crisis?
Petang and Abiansemal Sub-Districts, Badung Regency, which are dominated by wood craft industry players in the SMIs sector as the backbone of the economy, are seriously affected not only in terms of total production and...