The aim of this paper is to provide empirical evidence on the relation between line-of-business diversification and performance for the insurance companies that operated in the republic of Serbia in the period [2004][2005][2006][2007][2008][2009][2010][2011][2012][2013][2014]. The research results show that the relation between risk-adjusted returns measured both by return on assets and return on equity and line-of-business diversification and performance measured by entropy is significant and positive, which means that diversified insurers outperform undiversified insurers. These results could be useful in decision making for insurance companies as they suggest the need for diversification (specialisation), growth in size, capitalization and affiliation (grouping).
Young people from 18 to 35 represent the basic lever of the development of every society. Their self-employment and entrepreneurship are of particular importance for poor countries and the countries in post-transitional period. The entrepreneurship of the young people is permeated by a large number of challenges. The most important challenges are the method of financing and financial risks in business. The research aim of this paper is inquiring of the exposure to financial risks with the aim of their minimization by adequate management. So as to gain the aim that is set in the paper, we are researching the exposure of young entrepreneurs to the financial risks, the sources of finance of young entrepreneurs, theoretical framework of risk management and quantitative approaches to the financial risk management.
The aim of this paper is to examine market structure, conduct and performance relationship (S-C-P) hypothesis for the non-life insurance industry in Eastern European countries. Additionally, we examine the effect of liberalisation on market structure and performance. We use the country-specific fixed effects models for panel data for the period 2004-2008 allowing each cross-sectional unit to have a different intercept term serving as an unobserved random variable that is potentially correlated with the observed regressors. Three models are presented, each placing market structure, liberalisation and profitability in a distinct environment defined by related control variables. The research results support the S-C-P hypothesis in all of the observed models, showing evidence of strong influence of market structure and liberalisation on market profitability. These results could be useful in decision-making for both governments and insurance companies.
T he aim of this paper is to investigate factors that influence the attractiveness of nonlife insurance market for foreign insurers in Eastern Europe. We use country-specific effects models for panel data that covers fifteen countries during the period 2004-2009, allowing each cross-sectional unit to have a different intercept term serving as an unobserved variable that is potentially correlated with the observed regressors. The research results indicate that the main forces affecting market attractiveness are insurance demand, entry barriers, market concentration and the return on investment. These findings provide significant implications for local governments and for both foreign and domestic insurers.
ARTICLE INFOJEL classification: G22,L1
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