Measuring Sustainability of Takaful Performance in Malaysia

This paperwas conducted to assessthe performance of Takaful companies in Malaysia. The study attempts to examine the internal factors which are liquidity, equity return, leverage, size of firm, underwriting risk, while the external factors; gross domestic product and inflation on the performance of...

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Bibliographic Details
Main Authors: Che Arshad, Noraziah, Irijanto, Tubagus Thresna
Format: Article
Language:English
Published: Penerbit UIS 2020
Subjects:
Online Access:https://repo.uum.edu.my/id/eprint/31420/1/IJIEFER%2003%2001%202020%2002-13.pdf
https://repo.uum.edu.my/id/eprint/31420/
https://ijiefer.uis.edu.my/ircief/article/view/8
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Institution: Universiti Utara Malaysia
Language: English
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Summary:This paperwas conducted to assessthe performance of Takaful companies in Malaysia. The study attempts to examine the internal factors which are liquidity, equity return, leverage, size of firm, underwriting risk, while the external factors; gross domestic product and inflation on the performance of Takaful company which refer to return on assets. The data for thisresearch were collected fromeleven local and four foreign Takafulcompanies. Secondary data that was collected in this research comes from the annual financial report (balance sheet and income statements) of Takaful companies; and the World Bank Indicator for gross domestic product per capita and inflationfor years 2011 to 2019. The method employed in this study is Panel Data Regression. This research found that there is a significant relationship between liquidity, equity return, underwriting risk and GDP towards the performance of Takaful companies in Malaysia. It is expected that findings from this study will contribute to the existing literature to both theoretical and managerial approaches in order to better understand the pattern of performance for both local and foreign takaful companies in Malaysia