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Internal and External Determinants of Risk Based Capital

Author

Listed:
  • Jhonni Sinaga
  • Adler Haymans Manurung
  • Nera Marinda Machdar
  • John Edward Harly Jacob FoEh

Abstract

This research aims to investigate the determinants of Risk Based Capital (RBC) of Indonesia’s general insurance public listed companies. Panel data regression model was used to analyze the internal and external variables influencing the RBC. This research finds that ratios of sales to total asset, gross profit to total asset, premium claim to total asset, investment to total asset, and interest have a significant impact on the RBC of Indonesia's publicly traded general insurance companies.  JEL classification numbers: C650, G22, G32.

Suggested Citation

  • Jhonni Sinaga & Adler Haymans Manurung & Nera Marinda Machdar & John Edward Harly Jacob FoEh, 2023. "Internal and External Determinants of Risk Based Capital," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 13(2), pages 1-5.
    • Handle: RePEc:spt:apfiba:v:13:y:2023:i:2:f:13_2_5
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    References listed on IDEAS

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    More about this item

    Keywords

    Sales to total asset; Policy rate; investment performance; Gross profit to total asset; Premium claim; Panel data regression model; Risk based capital (RBC).;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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