International Journal of Economics and Business Administration
Articles Information
International Journal of Economics and Business Administration, Vol.5, No.1, Mar. 2019, Pub. Date: Mar. 19, 2019
Determinants of Financial Performance of Insurance Companies of USA and UK During Global Financial Crisis (2007 – 2016)
Pages: 23-33 Views: 1453 Downloads: 568
Authors
[01] Anam Batool, Department of Finance, Lahore School of Accountancy and Finance, University of Lahore, Lahore, Pakistan.
[02] Chaudhry Abdullah Sahi, Department of Finance, Lahore School of Accountancy and Finance, University of Lahore, Lahore, Pakistan; Department of Finance, London South Bank University, London, UK.
Abstract
The economy as well as insurance industry of USA and UK face decline during last decade. The researcher compares two insurance industries, analysis possible determinants of financial performance during global financial crisis, collected 24 insurance companies’ Quarterly data from 2007-16 and applied panel data techniques. Explanatory variables based on internal (Size of firm, liquidity, leverage and asset turnover) and external factors (GDP, CPI, interest rate and WTI). Dependent variable: ROA and ROE (profitability indicators). This study concludes; In USA size of firm, liquidity, leverage, asset turnover, GDP and WTI have positive while CPI and interest rate have negative significant impact. In UK size of firm, liquidity, GDP, CPI and WTI have positive but leverage, asset turnover and interest rate has negative significant impact; US insurance is efficient as compare to UK. These findings will be helpful for insurance industries, government, policymakers and investors in taking decision and improving the performance.
Keywords
USA Insurance Companies, UK Insurance Companies, Internal Factors, External Factors
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