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
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- EP ID EP745298
- DOI 10.47191/jefms/v7-i9-47
- Views 46
- Downloads 0
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