The Effect of Corporate Governance and Premium Growth on the Performance of Insurance Companies in Indonesia

Markonah Markonah, Achmad Sudiro, Surachman and Mintarti Rahayu

European Research Studies Journal, 2019, vol. XXII, issue 2, 367-383

Abstract: Purpose: The aim of this study is to test the hypothesis about the effect of corporate governance and premium growth in the performance of insurance companies in Indonesia. The growth rate of insurance premiums has decreased throughout 2016, followed by a decline in performance mainly influenced by poor corporate governance. Design/Methodology/Approach: By comparing different studies we try to come to a conclusion regarding the effect of corporate governance and premium growth in the performance of insurance companies. Some previous research stated that corporate governance does not positively affect the performance of these companies. Others, have found that growth in premiums, capital growth, returns, claims ratios, and types of capital affected the growth of life insurance company assets, while the ratio of acquisition costs, administrative cost ratios, and capital did not significantly affect the growth of life insurance company assets in Indonesia. Findings: The findings in this study are the research framework which states that The Effect of Corporate Governance and Premium Growth on the Performance of Insurance Companies in Indonesia with company growth as mediation. Practical Implications: Findings of this study can be used by insurance companies as a study material to improve their performance. Originality/Value: The research hypotheses tested as they have been generated from the research framework.

Keywords: Corporate Governance; Insurance Premium; Corporate Performance; Company Growth. (search for similar items in EconPapers)
JEL-codes: G3 G38 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://ersj.eu/journal/1450/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:journl:v:xxii:y:2019:i:2:p:367-383

Access Statistics for this article

More articles in European Research Studies Journal from European Research Studies Journal
Bibliographic data for series maintained by Marios Agiomavritis ().