Measuring the Managerial Efficiency of Insurance Companies in Saudi Arabia: A Data Envelopment Analysis Approach

Naushad, Mohammad; Faridi, Mohammad Rishad; Faisal, Shaha

doi:10.13106/jafeb.2020.vol7.no6.297

Cited by 24 publications

(22 citation statements)

References 36 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The efficiency measurement of any production function of business is highly, significant for decision-making, further improvement and survival as a whole. As discussed in the literature review, the highly-recommended tool for efficiency studies is the DEA (Naushad et al 2020). Specifically, this study adopts DEA, which is a non-statistic model using liner programming.…”

Section: Data Envelopment Analysismentioning

confidence: 99%

Evaluation and Comparison of Bank Efficiency in Cross-Strait after ECFA

LIAO¹

2020

JAFEB

View full text Add to dashboard Cite

The purpose of this study is to investigate whether the ECFA impacted the efficiency of banks in China and Taiwan from 2008 to 2017. This study follows Seiford and Zhu (2002), who recommend using the standard data envelopment analysis model to measure performance by increasing the desirable outputs and decreasing the undesirables. The finding was that overall technical efficiency increased from 2012 to 2017, reaching 0.575, 0.652, 0617, 0.689, 0.701 and 0.74, respectively. This result implies bank efficiency did indeed improve after China and Taiwan signed the ECFA cooperation agreement. The study found that the mean technical efficiency was 0.8756 in China, greater than Taiwan's mean of 0.3511, implying that Chinese banks experienced a greater increase in efficiency after signing the EFCA. One possible reason explored in this study is that China's economy is currently growing at the highest rate in the world, and the banks' efficiency has benefited from greater economic growth. This suggests that cross-strait sustained negotiations to consummate an agreement on trade in the services will be a very important mission in the future. This result also provides significant evidence suggesting that not accounting for undesirable output while estimating the evolution of the model may seriously distort efficiency results.

show abstract

Section: Data Envelopment Analysismentioning

confidence: 99%

Evaluation and Comparison of Bank Efficiency in Cross-Strait after ECFA

LIAO¹

2020

JAFEB

View full text Add to dashboard Cite

show abstract

“…Several authors like ; Ariff and Can (2008); Cummins & Xie (2008); and Lai et al (2011) applied two stages to estimate relative efficiency scores, used DEA or SFA in the first stage to determine the comparable efficiency scores followed by multivariate analysis as the second stage with a set of contextual internal (company-specific) and external variables related to environment and economy. There are very few studies based on GCC insurers in the existing literature, like (Almulhim & McMillan, 2019;Benyoussef et al, 2019;Naushad et al, 2020) based on Saudi Arabian takaful insurers. Rao et al (2010) measured the managerial efficiency of insurers in the UAE.…”

Section: Rationale Of the Studymentioning

confidence: 99%

“…The upcoming section discusses the hypothesized effect of firm-specific variables and external environmental variables on the insurers' technical efficiency scores. Naushad et al (2020) computed the managerial efficiency of 30 insurance companies listed on the Saudi stock exchange from 2015 to 2018. They have applied BCC and CCR models of DEA and revealed that a good number of insurance companies operating in KSA were found to be efficient on managerial efficiency scale.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Efficiency drivers of insurers in GCC: an analysis incorporating company-specific and external environmental variables

Bansal

Singh

2021

Cogent Economics & Finance

View full text Add to dashboard Cite

The study aims to a comprehensive measure of listed insurance companies' technical efficiency in GCC countries and benchmarking, peer count summary, and measuring productivity changes in the first stage. In the second stage, the technical efficiency, pure technical efficiency, and scale efficiency scores have been regressed with internal (company variables) and external environmental variables. This paper first examines financial freedom and reinsurance activities on 60 insurers' efficiency from all GCC countries during 2016-2019. The results suggest a positive impact of economic freedom, solvency on technical efficiency components, and the negative effect of reinsurance ceding, market concentration on GCC insurers' technical efficiency. In productivity changes, UAE companies are doing well as compared to other countries' insurers. Overall, GCC insurers' efficiency is improving with pure technical efficiency having a CAGR of 2.13% and scale efficiency a CAGR of 2.96%. Based on the peer count summary, only the UAE and Saudi Arabia's companies can be benchmarked against another insurance company. Also, this research is one of the most comprehensive ones in the GCC region; this is the first study on an extensive data set to the best of our knowledge, including conventional insurers operating across GCC countries. This study is based on 60 insurers listed on the stock exchanges of six GCC countries. This will also be the first empirical evidence on the GCC insurers, which measures the impact of companyspecific variables and unique environmental variables separately on the two components of technical efficiency using Tobit regression. The positive association of competition and financial freedom with technical efficiency may encourage Rohit Bansal ABOUT THE AUTHOR Dr. Rohit Bansal holds a doctoral degree in Corporate Finance from the Indian Institute of Technology, Roorkee. He possesses a rich professional experience of over 10 years in Finance, Accounting, and Econometrics. He has published many articles & research papers in various international and refereed journals of repute Elsevier, Taylor & Francis, Springer, Sage, Emerald, and IGI Global, most of them listed in ABDC and Scopus. His research area includes corporate finance, stock markets, and financial markets. He also serves as a reviewer for select journals.

show abstract

“…Many countries where financial management is administered by Islamic Shariah are getting success by utilizing skilled personnel. The leading insurance companies in KSA emerged as the leader of the market in terms of managerial efficiency, and could be benchmarked by other companies operated in the market (Naushad, Faridi, & Faisal, 2020). One of the major challenges faced by the Islamic insurance companies in Bangladesh and many other countries is the lack of knowledgeable and qualified personnel.…”

Section: Shortage Of Skilled Personnelmentioning

confidence: 99%

Issues and Challenges of Financial Management Practices in Islamic Financial Institutions: Empirical Evidence From Bangladesh

Islam

Mamun

Islam³

et al. 2021

ijfb

View full text Add to dashboard Cite

Studies suggest several issues and challenges of financial management practices in Islamic banks and insurance companies and Islamic non-bank financial institutions (INBFIs) in Bangladesh. The purpose of the research is to examine the issues and challenges of Islamic Financial Management (IFM) from an empirical perspective. The study relies on a structured questionnaire survey in prominent Islamic financial institutions (IFIs) of Bangladesh for achieving its objective. After confirming data reliability based on Cronbach's alpha, the study proceeds to analyse by applying descriptive statistics and principal component factor analysis using correlation, Kaiser-Meyer-Olkin (KMO) and Bartlett's Test and VARIMAX Rotation. The study finds that there is no separate regulatory framework to supervise and monitor IFIs in Bangladesh rather the central bank regulates the Islamic financial system based on the existing laws and regulations of the conventional financial system. The findings of this study suggest that the government should establish a separate regulatory body for monitoring the IFI’s functions so that they can perform their activities smoothly in the congenial environment in Bangladesh. JEL Classification Codes: G10, G21, G23.

show abstract

Measuring the Managerial Efficiency of Insurance Companies in Saudi Arabia: A Data Envelopment Analysis Approach

Cited by 24 publications

References 36 publications

Evaluation and Comparison of Bank Efficiency in Cross-Strait after ECFA

Evaluation and Comparison of Bank Efficiency in Cross-Strait after ECFA

Efficiency drivers of insurers in GCC: an analysis incorporating company-specific and external environmental variables

Issues and Challenges of Financial Management Practices in Islamic Financial Institutions: Empirical Evidence From Bangladesh

Contact Info

Product

Resources

About