Risk indicators and related aspects in insurance companies in Palestine

Autor: Bahaa Razia, Bahaa Awwad
Jazyk: angličtina
Rok vydání: 2021
Předmět:
Zdroj: Insurance Markets and Companies, Vol 12, Iss 1, Pp 43-50 (2021)
Druh dokumentu: article
ISSN: 2616-3551
2522-9591
DOI: 10.21511/ins.12(1).2021.04
Popis: The purpose of this paper is to identify the impact of risk indicators of insurance companies listed on the Palestine Stock Exchange on earnings per share over the period 2010–2017. The sample consists of seven insurance companies listed on the Palestine Stock Exchange. The data was analyzed using the OLS regression technique. This helps to determine the relationship between the independent variable (earnings per share) and the dependent variables (liquidity risk, capital risk, rate of risky assets). The results show that the liquidity risk has a positive impact on earnings per share, while capital risk and rate of risky assets have a negative impact. This means that insurance companies listed on the Palestine Stock Exchange can achieve an acceptable balance between the liquidity risk index and the earnings per share in a way that does not prevent them from fulfilling their obligations. The findings of this study are demonstrated using figures and diagrams. The study recommends that insurance companies need to pay extra attention to risks and identify effective policies to deal with risks and reduce their impact, especially capital risk and the rate of risky assets. This is because these factors negatively affect earnings per share. The results of this study will be useful to relevant stakeholders in the sector. AcknowledgmentWe would like to thank the Palestine Technical University for their continuous and valuable support.
Databáze: Directory of Open Access Journals