Determinants of Profitability of General Insurance Companies in Indonesia

Azmi, Faisal; Irawan, Tony; Sasongko, Hendro

doi:10.34203/jimfe.v6i2.2263

Cited by 6 publications

(13 citation statements)

References 3 publications

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“…The results of this study are in line with Bayaraa (2017) , Pervan et al (2019) , Khan et al (2018) and Hertina et al (2021) which states that the current ratio has no effect on ROA. These results contradict the research of Nguyen and Nguyen, (2020) , Azmi et al (2020), Ramadhanti et al (2019) , Budhathoki et al (2020) , Agusfina & Sinarti (2020) , Samo and Murad (2019) , and Nurlaela et al (2019) which says that liquidity has an effect on profitability.…”

Section: Regression Model Testcontrasting

confidence: 81%

“…The current ratio is a measure of a company's liquidity. Azmi et al (2020) found the current ratio had a significant effect on ROA. Liquidity measures the company's ability to pay short-term debt with its current assets.…”

Section: Introductionmentioning

confidence: 92%

“…Research by Amalia & Kurniasih, (2018) , Samo and Murad (2019) , Nguyen and Nguyen (2020) , Agusfina & Sinarti (2020) , and Azmi et al (2020) found that liquidity (current ratio) has a positive effect on profitability (ROA). While the results of other studies say that liquidity (current ratior) has a negative effect on profitability (ROA) (Ravindran & Kengatharan, 2021) The results of research by Mustinah & Ferieka (2019) , Pardanawati (2021) , Putu et al (2021) and Almomani et al (2021) show that working capital turnover has a positive effect on profitability.…”

Section: Introductionmentioning

confidence: 98%

“…According to Azmi et al (2020) the profitability of a company is an indicator of a company's ability to generate profits. The profit of a company is important for the company because it will affect the sustainability of the company.…”

Section: Introductionmentioning

confidence: 99%

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Impact of Liquidity and Activities on Profitability by Mediation of Capital Structure

Suharna

Kurniasih

2022

AIJB

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This paper analyzes the impact of liquidity and activity on profitability with capital structure as a mediating variable. Return on assets (ROA) is the company's ability to generate profits in a certain period and develop dynamically that changes from time to time, depending on the variables that affect it as a whole, type of business, or company. This study contributes to the literature by investigating the factors that affect the profitability (ROA) of companies indexed by SRI KEHATI. This study aims to identify the determinants of company profitability either directly or through the role of mediating variables. The analysis used is panel data regression. The selected model is the fixed effect model (FEM) and uses path analysis and Sobel test. The results show that the current ratio has a direct effect on capital structure and capital structure has a direct effect on ROA. On the other hand, the current ratio and working capital turnover have no direct effect on ROA and working capital turnover does not directly affect the capital structure. The results of the path analysis prove that the capital structure is able to mediate the effect of the current ratio on ROA.

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Section: Regression Model Testcontrasting

confidence: 81%

Section: Introductionmentioning

confidence: 92%

Section: Introductionmentioning

confidence: 98%

Section: Introductionmentioning

confidence: 99%

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Impact of Liquidity and Activities on Profitability by Mediation of Capital Structure

Suharna

Kurniasih

2022

AIJB

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“…In addition, he found that the size of the company affects the return on assets positively up to a certain point and negatively after this point. Azmi et al (2020) analyzed the data of 40 insurance companies in Indonesia between 2013 and 2017 by panel regression method. As a result of the study, it was concluded that the variables of liquidity ratio, equity growth rate, size, loss/premium ratio, technical reserve ratio, economic growth rate, interest rate, return on investment, input costs, and leverage ratio affect the return on assets.…”

Section: Literature Reviewmentioning

confidence: 99%

The Research on the Effect of the Covid-19 Pandemic Period on the Financial Ratios of Non-Life Insurance Companies Traded on the Istanbul Stock Exchange

AYRANCI>¹,

KÜLEKÇİ²

2022

ijif

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The impacts of the Covid19 Pandemic era have had a significant impact on social and economic life across the globe. The Covid19 Pandemic, which directly affects human health and life, is expected to affect life insurance companies. In addition, it is expected that other sectors such as service, production, education and finance will be adversely affected, indirectly affecting non-life insurance companies as well as life insurance companies. However, no research has been conducted to investigate how the financial ratios of non-life insurance businesses in Turkey were impacted during the Covid19 Pandemic period. The relationship between the financial ratios of non-life insurance companies in the Istanbul Stock Exchange, before and after the Covid19 Pandemic, was examined using the t-Test method. To analyze the effects of the Covid19 Pandemic period on the financial ratios of non-life insurance companies, it was examined whether there was a substantial difference between data from 2018-2019, before the pandemic, and data from 2020-2021, after the pandemic. The financial ratios included in the analysis were determined as the Return on Assets, Liquidity Ratio, Current Ratio, Technical Provisions/Premiums Ratio and Premiums Received/Total Assets Ratio as a result of the literature review. As a result of the study, it was seen that while the profitability of non-life insurance companies increased, their liquidity decreased. However, it was found that this increase and decrease were not significant in terms of pre-pandemic and postpandemic periods.

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What determines the financial performance micro or macro antecedents: A case of Indian general insurance

Sasidharan¹,

Ranjith

Prabhuram³

2022

J Corp Accounting Finance

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The insurance industry is vital to any economy, particularly a country's financial market. The attempt to investigate the economic performance of the insurance firms is due to a lack of empirical research in the general insurance sector in India on the economic performance of insurance organizations concentrating on firm-specific and external aspects. Therefore, the Insurance companies in India were studied using econometric panel data of 21 firms for ten years, from 2010-2011 to 2019-2020. Firm-specific factors (firm size, financial leverage, retention ratio, liquidity, premium growth rate, loss ratio, re-insurance dependence, and macroeconomic factors (market share, GDP per capita, and inflation) are included in the model. Findings revealed that retention ratio, premium growth, and market share significantly positively affect the ROA while, on the other hand, loss ratio, liquidity, and inflation significantly negatively affect the profitability (ROA). Other factors, including size, re-insurance dependence, leverage ratio, and GDP per capita, have no significant impact on insurance firms' profitability (ROA). Furthermore, the variables that significantly affect the performance in terms of ROE are financial leverage and market share, holding a positive impact.And firm size shows an inverse relationship with ROE.

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Determinants of Profitability of General Insurance Companies in Indonesia

Cited by 6 publications

References 3 publications

Impact of Liquidity and Activities on Profitability by Mediation of Capital Structure

Impact of Liquidity and Activities on Profitability by Mediation of Capital Structure

The Research on the Effect of the Covid-19 Pandemic Period on the Financial Ratios of Non-Life Insurance Companies Traded on the Istanbul Stock Exchange

What determines the financial performance micro or macro antecedents: A case of Indian general insurance

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