Abstract:

Research shows that capital structure has an important effect on the product-market competitiveness of firms. This study adds to our understanding of the nature of this relationship by developing a research model that takes into account the insured's market share (MS), the concentration ratio of the market's largest companies (CR), and Herfindahl-Hirschma Index (HHI) as independent variables, and financial leverage as dependent variables. A sample of 21 insurance companies in Saudi Arabia for a period of ten years from 2009–2019 was considered. The findings reveal that there is a significant association between product market competition and capital structure. Due to the small sample size, the generalizability of the results is limited. It is recommended that future studies deal with a longer period of time with larger sample size and addition. It is recommended that future studies include more variables, such as the effectiveness of anti-friction laws in the industry.

Keywords:

Product market competition; Capital structure; Insurance Industry.

How to Cite:

Mohannad Ahmad Kamel Almajali and W Muhammad Zainuddin Bin Wan Abdullah. Empirical Evidence from the Insurance Industry on Product Market Competitiveness and Capital Structure. [ref]: vol.21.2023. available at: https://refpress.org/ref-vol21-a129/