Profitability of Insurance Brokerage Firms in Ghana

Franklin Owusu-Sekyere () and Richard Kotey

Academic Journal of Economic Studies, 2019, vol. 5, issue 2, 179-192

Abstract: The financial industry is growing up rapidly, enabling large volumes of transactions to be carried out. This growth has significantly increased the demand for insurance and insurance products. Though prior studies have examined the factors that drive the performance of the insurance industry from life and non-life perspective, not much attention had been given to the contribution of insurance brokers who perform key roles in the insurance sector. This study examined the factors that determine the profitability of insurance brokers in a developing economy, Ghana. Panel data from 64 insurance brokerage firms were sampled over a period of 5 years (2011 to 2015). The study adopted a fixed effects and random effects estimation model using robust standard errors to check for biases. We found that monetary assets and firm size positively affects returns (ROA and ROE) whilst debt and fixed assets had a negative effect on returns. Comparing monetary assets and size, size contributed more to profitability. The study recommends that government, policymakers, and other stakeholders adopt competent growth and development strategies to ensure the sector is more resourced.

Keywords: Profitability; Performance; Insurance; Brokerage (search for similar items in EconPapers)
JEL-codes: G22 G24 L25 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.ajes.ro/wp-content/uploads/AJES_article_1_262.pdf (application/pdf)
http://www.ajes.ro/wp-content/uploads/AJES_article_1_262.pdf (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:khe:scajes:v:5:y:2019:i:2:p:179-192

Access Statistics for this article

More articles in Academic Journal of Economic Studies from Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest Contact information at EDIRC.
Bibliographic data for series maintained by Adi Sava ().