Affiliation:
1. SİVAS CUMHURİYET ÜNİVERSİTESİ, ZARA VEYSEL DURSUN UYGULAMALI BİLİMLER YÜKSEKOKULU, FİNANS VE BANKACILIK BÖLÜMÜ
2. School of Economics, Shandong University of Finance and Economics
3. BURDUR MEHMET AKİF ERSOY ÜNİVERSİTESİ
Abstract
This study aims at determining the causal link between financial performance and premium production of non-life insurance companies. The relation between the financial performance and premium production is explored employing data from the 2011-2019 period for eight Turkish non-life insurance companies. In the first stage of the analysis, a hybrid model including LOPCOW, SWARA II, and MARCOS methods is proposed to determine companies’ financial performance values. In this stage, a novel integrated weighting method for calculating criterion weights is applied based on objective information and judgements of decision-makers. In the second stage, the association between financial performance and premium production is investigated by correlation analysis. In the last stage, the causality linkage between the two variables is estimated using a panel causality test developed by Dumitrescu and Hurlin (2012). According to the results obtained from the panel causality test, the bidirectional causality relation exists between financial performance and premium production. Besides, the individual panel causality results reveal that bidirectional causality is valid for only Allianz and Anadolu insurance companies, which had an average share of over 35% in total non-life premium production during the analysis period. The paper provides fresh evidence on the association between the financial performance and premium production, particularly from the Turkish context.
Publisher
Mehmet Akif Ersoy Universitesi Iktisadi ve Idari Bilimler Fakultesi Dergisi
Subject
Organic Chemistry,Biochemistry
Reference38 articles.
1. Ahmed, N., Ahmed, Z., & Usman, A. (2011). Determinants of performance: a case of life insurance sector of Pakistan. International Research Journal Finance and Economics, 61, 123–128.
2. Al-Faryan, M. A. S., & Alokla, J. (2023). Do Publicly Listed Insurance Firms in Saudi Arabia Have Strong Corporate Governance?. Economies, 11(1), 21.
3. Almajali, A.Y., Alamro, S.A., & Al-Soub, Y.Z. (2012). Factors affecting the financial performance of Jordanian insurance companies listed at Amman Stock Exchange. Journal Management Research, 4(2), 266–289.
4. Apergis, N., & Poufinas, T. (2020). The role of insurance growth in economic growth: Fresh evidence from a panel of OECD countries. The North American Journal of Economics and Finance, 53, 101217.
5. Banerjee, S., & Savitha, B. (2021). Competition reduces profitability: the case of the Indian life microinsurance industry. The Geneva Papers on Risk and Insurance - Issues and Practice, 46, 383-398.
Cited by
1 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献