Welcome to the Uniglobe Library
From this page you can:
Home |
Author details
Author Ghanshyam Pokharel |
Available item(s) by this author
Refine your search Apply to external sources
Impact of firm specific and macroeconomic factors on the performance of Nepalese insurance company / Ghanshyam Pokharel
Title : Impact of firm specific and macroeconomic factors on the performance of Nepalese insurance company Material Type: printed text Authors: Ghanshyam Pokharel, Author Publication Date: 2017 Pagination: 101p. Size: GRP/Thesis Accompanying material: 9/B Languages : English Descriptors: Macroeconomics-Econometric models Class number: 332.632 Abstract: The performance of any business firm not only plays the role to increase the market value of that specific firm but also leads towards the growth of the whole sector which ultimately leads towards the overall prosperity of the economy. Harrington (2005) found that pprofitability is one of the most important objectives of financial management because one goal of financial management is to maximize the owner` s wealth. Assessing the determinants of performance of insurers has gained the importance in the corporate finance literature because as intermediaries, these companies are not only providing the mechanism of risk transfer, but also helps to channelize the funds in an appropriate way to support the business activities in the economy. However, it has received little attention particularly in developing economies (Ahmed et al., 2010).
Most of the empirical work investigates the impact of firm specific and macro economic variables on the performance of insurance companiesmostly in the developed economy. However, such studies are lacking in the developing economy. Therefore, this study tries to investigate the impact of firm specific and macro economic variables on the performance of insurance companies’ evidence from Nepalese insurance companies.
The major objective of the study is to examine explanatory power of firm specific and macroeconomic variables on the performance of insurance companies in the context of Nepalese insurance companies.The study is based on the secondary data of 16 insurance companies for the period of 2007/08 to 2014/15 with a total of 128 observations.The main source of data includes statistics report of Insurance Board of Nepal, annual reports of selected Nepalese insurance companies and data bank of World Bank. The pooled cross sectional data analysis has been undertaken in the study. The research design adopted in this study is descriptive and causal comparative research design as it deals with the impact of firm specific and macroeconomic variables on the performance of Nepalese insurance companies.
The result shows that SICL has highest average return on assets (8.98 percent) and lowest for NB (-0.71 percent). The average return on equity is highest for SHICL (32.44 percent) and lowest for NB (-1.28 percent). The average size is highest for NLIC (Rs.12223.28 million) and lowest for NB (Rs.255.93 million). The average leverage is highest for UICL (69.93 percent) and lowest for LICN (5.29 percent). The average liquidity is highest for ALICL (10.05 times) and lowest for NB (0.87 times). The average tangibility is highest for NLG (64.81 percent) and lowest for LICN (0.90 percent). The inflation rate is highest in the year 2009/10 (11.10 percent) and lowest in the year 2007/08 (5.70 percent). Gross domestic productgrowth rate is highest in the year 2007/08 (5.90 percent) and lowest in the year 2014/15 (2.30 percent).
The descriptive statistics for selected insurance companies shows that the average return on assets, return on equity, age, size, liquidity, leverage, tangibility; gross domestic growth rate and inflation rate are 4.64 percent, 11.34 percent, 11.31 years, Rs.2608.67 million, 2.81 times, 45.17 percent, 8.30 percent, 4.64 percent and 9.70 percent respectively.
The study of selected insurance companies shows that age, size, liquidity, leverage, tangibility and gross domestic product growth rate are positively related with performance of Nepalese insurance companies. However, inflation is negatively related with performance of Nepalese insurance companies.
The regression analysis result reveals that age, size, liquidity, leverage, tangibility and gross domestic product growth rate has positive impact on performance of Nepalese insurance companies. It indicates that increase in size and liquidity leads to increase in performance of Nepalese insurance companies and vice versa. Similarly, increase in leverage, tangibility and gross domestic product growth rate leads to increase in performance of Nepalese insurance companies and vice versa. However, result also shows that inflation rate has negative influence on the performance of Nepalese insurance companies. It indicates that increase in inflation rate leads to decrease in performance of Nepalese insurance companies and vice versa.
Impact of firm specific and macroeconomic factors on the performance of Nepalese insurance company [printed text] / Ghanshyam Pokharel, Author . - 2017 . - 101p. ; GRP/Thesis + 9/B.
Languages : English
Descriptors: Macroeconomics-Econometric models Class number: 332.632 Abstract: The performance of any business firm not only plays the role to increase the market value of that specific firm but also leads towards the growth of the whole sector which ultimately leads towards the overall prosperity of the economy. Harrington (2005) found that pprofitability is one of the most important objectives of financial management because one goal of financial management is to maximize the owner` s wealth. Assessing the determinants of performance of insurers has gained the importance in the corporate finance literature because as intermediaries, these companies are not only providing the mechanism of risk transfer, but also helps to channelize the funds in an appropriate way to support the business activities in the economy. However, it has received little attention particularly in developing economies (Ahmed et al., 2010).
Most of the empirical work investigates the impact of firm specific and macro economic variables on the performance of insurance companiesmostly in the developed economy. However, such studies are lacking in the developing economy. Therefore, this study tries to investigate the impact of firm specific and macro economic variables on the performance of insurance companies’ evidence from Nepalese insurance companies.
The major objective of the study is to examine explanatory power of firm specific and macroeconomic variables on the performance of insurance companies in the context of Nepalese insurance companies.The study is based on the secondary data of 16 insurance companies for the period of 2007/08 to 2014/15 with a total of 128 observations.The main source of data includes statistics report of Insurance Board of Nepal, annual reports of selected Nepalese insurance companies and data bank of World Bank. The pooled cross sectional data analysis has been undertaken in the study. The research design adopted in this study is descriptive and causal comparative research design as it deals with the impact of firm specific and macroeconomic variables on the performance of Nepalese insurance companies.
The result shows that SICL has highest average return on assets (8.98 percent) and lowest for NB (-0.71 percent). The average return on equity is highest for SHICL (32.44 percent) and lowest for NB (-1.28 percent). The average size is highest for NLIC (Rs.12223.28 million) and lowest for NB (Rs.255.93 million). The average leverage is highest for UICL (69.93 percent) and lowest for LICN (5.29 percent). The average liquidity is highest for ALICL (10.05 times) and lowest for NB (0.87 times). The average tangibility is highest for NLG (64.81 percent) and lowest for LICN (0.90 percent). The inflation rate is highest in the year 2009/10 (11.10 percent) and lowest in the year 2007/08 (5.70 percent). Gross domestic productgrowth rate is highest in the year 2007/08 (5.90 percent) and lowest in the year 2014/15 (2.30 percent).
The descriptive statistics for selected insurance companies shows that the average return on assets, return on equity, age, size, liquidity, leverage, tangibility; gross domestic growth rate and inflation rate are 4.64 percent, 11.34 percent, 11.31 years, Rs.2608.67 million, 2.81 times, 45.17 percent, 8.30 percent, 4.64 percent and 9.70 percent respectively.
The study of selected insurance companies shows that age, size, liquidity, leverage, tangibility and gross domestic product growth rate are positively related with performance of Nepalese insurance companies. However, inflation is negatively related with performance of Nepalese insurance companies.
The regression analysis result reveals that age, size, liquidity, leverage, tangibility and gross domestic product growth rate has positive impact on performance of Nepalese insurance companies. It indicates that increase in size and liquidity leads to increase in performance of Nepalese insurance companies and vice versa. Similarly, increase in leverage, tangibility and gross domestic product growth rate leads to increase in performance of Nepalese insurance companies and vice versa. However, result also shows that inflation rate has negative influence on the performance of Nepalese insurance companies. It indicates that increase in inflation rate leads to decrease in performance of Nepalese insurance companies and vice versa.
Hold
Place a hold on this item
Copies
Barcode Call number Media type Location Section Status 327/D 332.632 POK Thesis/Dissertation Uniglobe Library Social Sciences Available