Which is Important in Defining the Profitability of UK Insurance Companies: Internal Factors or External Factors?

(Pages 31-38)

Hany A Saleh1 and Abdelkader Derbali2,*
1Assistant Professor of Insurance and Actuarial Sciences, Mansoura University, Egypt
2Assistant Professor at the Department of Administrative and Financial Sciences and Techniques, Community College, Taibah University, Saudi Arabia. Department of Finance and Accounting, Higher Institute of Informatics and Management of Kairouan, Kairouan University, Tunisia.
DOI: https://doi.org/10.35341/1923-7529.2020.18.04

Abstract:

The purpose of this paper is to examine empirically the impact of internal factors and external factors on the performance of UK insurance companies. To do so, we use a sample composed of 20 insurance firms during the period from 2000 to 2018. We employ the panel data estimation to capture the impact of internal factors and external factors on the performance of UK insurance companies. We use two measures of performance such as, ROA and ROE. Our results show that size of firm, liquidity, GDP, CPI and WTI have a positive and significant effect on the performance of UK insurance companies. But we find that leverage, asset turnover and interest rate present negative and considerable impact on the profitability of UK insurance enterprises. These findings can be considered as a beneficial for insurance enterprises, directors, representatives, and shareholders in making decision and improving the profitability of their organizations.


Keywords:

Performance; internal factors; external factors; panel data; UK insurance industries.


JEL Classifications:

G22, G52, I13.


How to Cite:

Hany A Saleh and Abdelkader Derbali. Which is Important in Defining the Profitability of UK Insurance Companies: Internal Factors or External Factors?. Review of Economics and Finance. [ref]: vol.18.2020. available at: https://refpress.org/ref-vol18-a4/


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