Pub Date : 2019-01-01DOI: 10.20472/iac.2018.040.049
Tomislava Pavic Kramaric, I. Pavić
The aim of this paper is to test the influence of bancassurance as a distribution channel on performance of non-life insurance sector in selected European countries. The analysis refers to 2009 ? 2015 period and it is conducted using static panel analysis. Performance measures employed comprise of sales profitability as well as of profitability ratio of technical activity whereas independent variables used in the model include share of bancassurance, market share, gross written premium growth rate, claims growth rate, insurance density, share of premium in GDP, share of reinsurance and number of insurance companies. The results of the analysis in both models reveal that market share prove to be statistically significant determinant of insurance sector performance negatively affecting performance. Furthermore, insurance density has statistically significant and positive influence on performance measured with profitability ratio of technical activity.
{"title":"DOES BANCASSURANCE AFFECT PERFORMANCE OF NON-LIFE INSURANCE SECTOR – CASE OF EU COUNTRIES","authors":"Tomislava Pavic Kramaric, I. Pavić","doi":"10.20472/iac.2018.040.049","DOIUrl":"https://doi.org/10.20472/iac.2018.040.049","url":null,"abstract":"The aim of this paper is to test the influence of bancassurance as a distribution channel on performance of non-life insurance sector in selected European countries. The analysis refers to 2009 ? 2015 period and it is conducted using static panel analysis. Performance measures employed comprise of sales profitability as well as of profitability ratio of technical activity whereas independent variables used in the model include share of bancassurance, market share, gross written premium growth rate, claims growth rate, insurance density, share of premium in GDP, share of reinsurance and number of insurance companies. The results of the analysis in both models reveal that market share prove to be statistically significant determinant of insurance sector performance negatively affecting performance. Furthermore, insurance density has statistically significant and positive influence on performance measured with profitability ratio of technical activity.","PeriodicalId":42415,"journal":{"name":"International Journal of Economic Sciences","volume":"1 1","pages":""},"PeriodicalIF":2.4,"publicationDate":"2019-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67598814","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-01-01DOI: 10.20472/ES.2019.8.1.004
A. Haque, Ammar Abid, M. Qamar, S. Asif
This paper aims to investigate the effects of cash flow-investment sensitivity over firms facing varying levels of financial distress. For this purpose, cash flow, dividend policy, firm’s age, and size are used to create subsamples of firms facing different degrees of financial constraints. Using an unbalanced panel of 336 non-financial firms listed at Pakistan Stock Exchange over the period from 2006 to 2017, we provide evidence that the prevailing financial constraints affect the investment decisions of sample firms. Financial distress, as identified by cash flow, dividend policy and size of the firm, increases with the rise of cash flow-investment-sensitivity, thus substantiating the use of these measures as indicators of financial distress. Furthermore, evidence of the U-shaped investment curve is found when the sample is split on the basis of cash flow, suggesting a non-linear relation between cash flow and investment. The results shed light on the relation between financial and real cycle downturns suggesting the need for economic policies to be countercyclical with respect to financial and credit conditions.
{"title":"FINANCIAL DISTRESS OF COMPANIES AND CASH FLOW-INVESTMENT-SENSITIVITY: EVIDENCE FROM PANEL OF NON-FINANCIAL FIRMS","authors":"A. Haque, Ammar Abid, M. Qamar, S. Asif","doi":"10.20472/ES.2019.8.1.004","DOIUrl":"https://doi.org/10.20472/ES.2019.8.1.004","url":null,"abstract":"This paper aims to investigate the effects of cash flow-investment sensitivity over firms facing varying levels of financial distress. For this purpose, cash flow, dividend policy, firm’s age, and size are used to create subsamples of firms facing different degrees of financial constraints. Using an unbalanced panel of 336 non-financial firms listed at Pakistan Stock Exchange over the period from 2006 to 2017, we provide evidence that the prevailing financial constraints affect the investment decisions of sample firms. Financial distress, as identified by cash flow, dividend policy and size of the firm, increases with the rise of cash flow-investment-sensitivity, thus substantiating the use of these measures as indicators of financial distress. Furthermore, evidence of the U-shaped investment curve is found when the sample is split on the basis of cash flow, suggesting a non-linear relation between cash flow and investment. The results shed light on the relation between financial and real cycle downturns suggesting the need for economic policies to be countercyclical with respect to financial and credit conditions.","PeriodicalId":42415,"journal":{"name":"International Journal of Economic Sciences","volume":"1 1","pages":""},"PeriodicalIF":2.4,"publicationDate":"2019-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67598907","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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