THE EFFECTS OF FIRM SPECIFIC FACTORS AND MACROECONOMICS ON PROFITABILITY OF PROPERTY-LIABILITY INSURANCE INDUSTRY IN TAIWAN
Journal Title: Asian Economic and Financial Review - Year 2014, Vol 4, Issue 5
Abstract
This article investigates the relationship between firm specific factors and macroeconomics on profitability in Taiwanese property-liability insurance industry using the panel data over the1999 through 2009 time period. Using operating ratio and return on assets (ROA) for the two kinds of profitability indicators to measure insurers’ profitability. The results show that underwriting risk, reinsurance usage, input cost, return on investment (ROI) and financial holding group have significant influence on profitability in both operating ratio and ROA models. The insurance subsidiaries of financial holding group compared with other insurance companies, showing lower profitability. In addition, economic growth rate has significant influence on profitability in operating ratio model but insignificant influence on profitability in ROA model. The findings contribute to insurance operation in the property-liability insurance industry and should be of interest to regulators, investors and policyholders.
Authors and Affiliations
Chen-Ying Lee| Assistant Professor, Department of Insurance and Finance, Chihlee Institute of Technology, Taiwan
AN EMPIRICAL ANALYSIS OF EFFECTIVE CUSTOMERS SERVICE ON NIGERIA BANKS PROFITABILITY. (A QUEUING AND REGRESSION APPROACH)
This study investigates the impact of various elements of customer services adopted by some Nigerians banks to improve bank profitability in the Nigerian banking industry. It examines the mean profit and how each of the...
AN APPRAISAL OF PERSONAL INCOME TAX EVASION IN NIGERIA
The objective of this study is to appraise the evasion of personal income tax in Nigeria. A total of 160 questionnaires were administered to some selected self-employed individuals in Edo State comprising businessmen, co...
TRANSACTION COSTS, MULTIPLE EQUILIBRIA, AND CURRENCY DEVALUATION
This paper attempts to examine the effect of a currency devaluation on domestic output by incorporating the Coase (1937) assertion into a standard open economy model. Our results show that there will be multiple equilibr...
DETERMINANTS OF CAPITAL STRUCTURE OF BANKS: EVIDENCE FROM SUB-SAHARA AFRICA
This study seeks to examine the determinants of capital structure of banks in Sub-Sahara Africa. This study has employed the use of panel data techniques to analyze the determinants of capital structure of banks in sub-S...
FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH: EVIDENCE FROM A PANEL STUDY ON SOUTH ASIAN COUNTRIES
The paper examines the relationship between financial development and economic growth using panel data for five emerging South Asian countries - Bangladesh, India, Nepal, Pakistan and Sri Lanka. The heterogeneous panel d...