The Impact of the Financial Performance on Capital Structure of Insurance Industry in Egypt

Salah Mohamed Eladly

International Business Research, 2021, vol. 14, issue 7, 103

Abstract: This paper attempts to investigate the impact of the profitability and liquidity on capital structure of insurance industry in Egypt as applied on a sample of (19) insurance firms represented in the Egyptian insurance industry over the period from 1999-2019. The capital structure is measured by debt ratio, and the financial performance is measured by (liquidity, return on equity, and retune on investment).The study results show that there are significant negative linear relationships between the independent variable in terms of return on equity (X1), return on investment (X3), and dependent variable for the capital structure (Y) at the level of significant less than (0.001); based on panel data analysis, the results show that Tau-statistic, and z-statistic, are at a significant level less than (0.05).The statistical conclusion is the null significant relationship between the capital structure and liquidity, while there is a significant relationship between the capital structure, return on equity, and return on investment. The results also show that the R2 for the independent variables are accepted in the model (capital structure Y, lag Y1, return on equity X1, liquidity X2, and return on investment) by (79.3%) from total variation of capital structure (Y).

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.ccsenet.org/journal/index.php/ibr/article/download/0/0/45511/48360 (application/pdf)
http://www.ccsenet.org/journal/index.php/ibr/article/view/0/45511 (text/html)

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:ibn:ibrjnl:v:14:y:2021:i:7:p:103

Access Statistics for this article

More articles in International Business Research from Canadian Center of Science and Education Contact information at EDIRC.
Bibliographic data for series maintained by Canadian Center of Science and Education ().