A panel data analysis on the determininants of profitabiltiy of life insurance firms in the Philippines for the period 2006-2015
The purpose of this research is to identify the determinants of the profitability of life insurance companies in the Philippines by investigating the relationship of the profitability measures, two-year overall operating ratio and investment yield, against the firm-specific factors namely firm growt...
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| Main Authors: | , , , |
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| Format: | text |
| Language: | English |
| Published: |
Animo Repository
2017
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| Subjects: | |
| Online Access: | https://animorepository.dlsu.edu.ph/etd_bachelors/8168 |
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| Institution: | De La Salle University |
| Language: | English |
| Summary: | The purpose of this research is to identify the determinants of the profitability of life insurance companies in the Philippines by investigating the relationship of the profitability measures, two-year overall operating ratio and investment yield, against the firm-specific factors namely firm growth, firm size, leverage, liquidity, and tangibility of assets and macroeconomic factors, specifically gross domestic product (GDP) and interest rates. The researchers used a sample size of twenty-two (22) life insurance firms over the course of ten (10) years from 2006-2015. A panel data analysis was conducted to determine significant independent variables. As a result, it was determined that 8.39% of the independent variables accounted for the changes in the operating ratio. Significant variables were firm size and tangibility of assets which showed a positive and negative relationship, respectively. As for the investment yield, 5.72% of the independent variables accounted for its changes. Both firm size and tangibility of assets showed a negative significant relationship towards the profitability ratio. With these results, it can be said that firm specific factors contribute to the profitability of life insurance companies. |
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