The Importance of Internal and External Factors in Defining the Profitability of UK Insurance Companies

Hany A. Saleh and Abdelkader Derbali

International Journal of Finance, Insurance and Risk Management, 2020, vol. 10, issue 4, 25-39

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

Keywords: Performance; internal factors; external factors; panel data; UK insurance industries. (search for similar items in EconPapers)
JEL-codes: G22 G52 I13 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journalfirm.com/journal/230/download (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ers:ijfirm:v:10:y:2020:i:4:p:25-39

Access Statistics for this article

More articles in International Journal of Finance, Insurance and Risk Management from International Journal of Finance, Insurance and Risk Management
Bibliographic data for series maintained by Marios Agiomavritis ().