IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-01695997.html
   My bibliography  Save this paper

Determinants of performance of Tunisia insurance companies: Case of life insurance

Author

Listed:
  • Abdelkader Derbali

    (Institut Supérieur de Gestion Sousse - Institut Supérieur de Gestion Sousse, Université de Sousse)

  • Lamia Jamel

    (Université de Sousse)

Abstract

Business performance has attracted researchers' attention in the previous literature of corporate finance. However, in the framework of the life insurance sector, they have given a number of attentions. In our paper, we investigate empirically the effect of firm-specific characteristics (size, leverage, tangibility, risk, growth, liquidity and age) on the profitability of eight Tunisian insurance companies during the period of study from 2005 to 2015. The empirical results show that the variables size, age and growth are the most important determinants of the performance of Tunisian insurance companies as measured by Return on Asset ratio. Then, leverage, tangibility, liquidity and risk don't affect the performance of Tunisian insurance companies.

Suggested Citation

  • Abdelkader Derbali & Lamia Jamel, 2014. "Determinants of performance of Tunisia insurance companies: Case of life insurance," Post-Print hal-01695997, HAL.
    • Handle: RePEc:hal:journl:hal-01695997
    Note: View the original document on HAL open archive server: https://hal.science/hal-01695997
    as

    Download full text from publisher

    File URL: https://hal.science/hal-01695997/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Demirguc, Asli & Huizinga, Harry, 1999. "Determinants of Commercial Bank Interest Margins and Profitability: Some International Evidence," The World Bank Economic Review, World Bank, vol. 13(2), pages 379-408, May.
    2. Mirza Hassan Hosseini & Nahid Saravi-Moghadam, 2017. "A model of customer-based brand equity: evidence from the banking service in Iran," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 21(1), pages 23-44.
    3. Berger, Allen N, 1995. "The Relationship between Capital and Earnings in Banking," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 27(2), pages 432-456, May.
    4. Lee, Chien-Chiang & Lee, Chi-Chuan & Chiu, Yi-Bin, 2013. "The link between life insurance activities and economic growth: Some new evidence," Journal of International Money and Finance, Elsevier, vol. 32(C), pages 405-427.
    5. Rateb J. Sweis & Rawan A. Saleh & Rawan H. Al-Etayyem & Bara' T. Qasrawi & Ayat M. Al Mahmoud, 2016. "Total quality management practices and organisational performance in Jordanian courier services," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 19(2), pages 258-276.
    6. Tarsila Segalla Afanasieff & Priscilla Maria Villa Lhacer & Márcio I. Nakane, 2002. "The Determinants of Bank Interest Spread in Brazil," Money Affairs, CEMLA, vol. 0(2), pages 183-207, July-Dece.
    7. Anand Prakash & R.P. Mohanty & S. Kumar & S.P. Kallurkar, 2011. "Validation of multiple-item scale for measuring service quality in life insurance business: structural equation modelling approach," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 8(4), pages 433-458.
    8. Rateb J. Sweis & Khalid M.A. Al Ahmad & Ghadeer A. Al-Dweik & Afnan R. Alawneh & Ayman Abu Hammad, 2016. "The relationship between total quality management practices and organisational performance at Jordanian hospitals," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 10(4), pages 519-542.
    9. Angbazo, Lazarus, 1997. "Commercial bank net interest margins, default risk, interest-rate risk, and off-balance sheet banking," Journal of Banking & Finance, Elsevier, vol. 21(1), pages 55-87, January.
    10. Adolfo Barajas & Roberto Steiner & Natalia Salazar, 1999. "Interest Spreads in Banking in Colombia, 1974-96," IMF Staff Papers, Palgrave Macmillan, vol. 46(2), pages 1-4.
    11. Didik Wahjudi & Moses L. Singgih & Patdono Suwignjo & Imam Baihaqi, 2016. "The relationship between organisational culture and firm performance: an empirical study on Indonesian manufacturing firms," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 18(1), pages 1-18.
    12. Vishal Singh Patyal & Maddulety Koilakuntla, 2016. "Relationship between organisational culture, quality practices and performance: conceptual framework," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 19(3), pages 319-344.
    13. Ming-Sun Horng & Yung-Wang Chang & Ting-Yi Wu, 2012. "Does insurance demand or financial development promote economic growth? Evidence from Taiwan," Applied Economics Letters, Taylor & Francis Journals, vol. 19(2), pages 105-111, February.
    14. Rakesh Kumar & Vikas Kumar, 2016. "Operational performance improvement by implementation of value stream mapping - a case study from Indian industry," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 19(4), pages 526-541.
    15. Michelle Clark Neely & David C. Wheelock, 1997. "Why does bank performance vary across states?," Review, Federal Reserve Bank of St. Louis, issue Mar, pages 27-40.
    16. Lay Hong Tan & Boon Cheong Chew & Syaiful Rizal Hamid, 2016. "Relationship between service quality and customer satisfaction: a study of Malaysian banking industry," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 19(1), pages 38-50.
    17. Sajeev Abraham George, 2016. "Productive efficiency, service quality and profitability: a comparative analysis of foreign and private banks in India," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 18(4), pages 518-536.
    18. Samy Ben Naceur & Mohamed Goaied, 2001. "The determinants of the Tunisian deposit banks' performance," Applied Financial Economics, Taylor & Francis Journals, vol. 11(3), pages 317-319.
    19. Sufian, Fadzlan, 2009. "Determinants of bank efficiency during unstable macroeconomic environment: Empirical evidence from Malaysia," Research in International Business and Finance, Elsevier, vol. 23(1), pages 54-77, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Soumya Sasidharan & V. K. Ranjith & Sunitha Prabhuram, 2023. "Determinants of Factors Affecting the Financial Performance of Indian General Insurance Firm: Panel Data Evidence," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 17(2), June.
    2. Noreen, Uzma, 2020. "The Estimation of Risk Management Efficiency and its Determinants," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 54(1), pages 69-79.
    3. Kalyani Mulchandani & CS Manish Sitlani & Ketan Mulchandani, 2016. "The determinants of financial performance in life insurance sector in India," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 6(10), pages 261-269, October.
    4. Muhammad Aleem Arshad & Muhammad Haneef Akhtar & Muhammad Ramzan Sheikh & Wajeeha Sheereen, 2023. "Determinants of Investment Yield of Insurance Firms in Pakistan," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(2), pages 214-286.
    5. Hany A. Saleh & Abdelkader Derbali, 2020. "The Importance of Internal and External Factors in Defining the Profitability of UK Insurance Companies," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 10(4), pages 25-39.
    6. Rania Al Omari & Rami S. Alkhawaldeh & Jamil J. Jaber, 2023. "Artificial Neural Network for Classifying Financial Performance in Jordanian Insurance Sector," Economies, MDPI, vol. 11(4), pages 1-16, March.
    7. Richard Yeaw Chong Seow, 2023. "Entrepreneurship Success: A Case Study of Eric Chua’s “TASK†Innovation in Training," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(7), pages 582-593, July.
    8. Jordan KJOSEVSKI & Mihail PETKOVSKI & Kiril SIMEONOVSKI, 2022. "The Effects of Individual and Economic Risks and Stress Testing of Non-Life Sector Profitability: The Case of the NorthMacedonian Insurance Sector," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 125-144, April.
    9. Kamanda Morara & Athenia Bongani Sibindi, 2021. "Determinants of Financial Performance of Insurance Companies: Empirical Evidence Using Kenyan Data," JRFM, MDPI, vol. 14(12), pages 1-13, November.
    10. Nazish Ishtiaq & Danish Ahmed Siddiqui, 2019. "Factors Affecting Financial Performance of Life Insurance Sector in Pakistan," International Journal of Social and Administrative Sciences, Asian Economic and Social Society, vol. 4(2), pages 178-199, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pankaj Sinha & Sakshi Sharma, 2016. "Determinants of bank profits and its persistence in Indian Banks: a study in a dynamic panel data framework," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 7(1), pages 35-46, March.
    2. Osuagwu, Eze, 2014. "Determinants of Bank Profitability in Nigeria," MPRA Paper 60948, University Library of Munich, Germany.
    3. Saona, Paolo, 2016. "Intra- and extra-bank determinants of Latin American Banks' profitability," International Review of Economics & Finance, Elsevier, vol. 45(C), pages 197-214.
    4. Souad Hammami & Mongi Lassoued & Ahmed Berteji, 2018. "The Tunisian Banks Performance," Noble International Journal of Economics and Financial Research, Noble Academic Publsiher, vol. 3(1), pages 1-19, January.
    5. Athanasoglou, Panayiotis P. & Brissimis, Sophocles N. & Delis, Matthaios D., 2008. "Bank-specific, industry-specific and macroeconomic determinants of bank profitability," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 18(2), pages 121-136, April.
    6. Fadzlan Sufian & Muzafar Shah Habibullah, 2012. "Developments in the efficiency of the Malaysian banking sector: the impacts of financial disruptions and exchange rate regimes," Progress in Development Studies, , vol. 12(1), pages 19-46, January.
    7. Sailesh Tanna & Kyriaki Kosmidou & Fotios Pasiouras, 2005. "Determinants of profitability of domestic UK commercial banks: panel evidence from the period 1995-2002," Money Macro and Finance (MMF) Research Group Conference 2005 45, Money Macro and Finance Research Group.
    8. NOR HAYATI BT AHMAD & MOHAMAD AKBAR NOOR BIN MOHAMAD Noor, 2012. "The Impact of 1998 and 2008 Financial Crises on Profitability of Islamic Banks," Working Papers id:4993, eSocialSciences.
    9. Trofimov, Ivan D. & Md. Aris, Nazaria & Ying Ying, Jovena Kho, 2018. "Determinants of Commercial Banks' Profitability in Malaysia," MPRA Paper 85598, University Library of Munich, Germany.
    10. Sufian, Fadzlan & Habibullah, Muzafar Shah, 2012. "Globalizations and bank performance in China," Research in International Business and Finance, Elsevier, vol. 26(2), pages 221-239.
    11. Sufian, Fadzlan & Habibullah, Muzafar Shah, 2010. "Does economic freedom fosters banks’ performance? Panel evidence from Malaysia," Journal of Contemporary Accounting and Economics, Elsevier, vol. 6(2), pages 77-91.
    12. Olalere Oluwaseyi Ebenezer & Wan Ahmad Wan Bin Omar & Syahida Kamil, 2017. "Bank Specific and Macroeconomic Determinants of Commercial Bank Profitability: Empirical Evidence from Nigeria," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 6(1), pages 25-38, January.
    13. Arezoo GHASEMI, & Malihe ROSTAMI, 2016. "Determinants Of Interest Rate Spread In Banking Industry," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 5(1), pages 1-46, January.
    14. Samy Ben Naceur & Mohammed Omran, 2008. "The Effects of Bank Regulations, Competition and Financial Reforms on MENA Banks’ Profitability," Working Papers 449, Economic Research Forum, revised 09 Jan 2008.
    15. Fadzlan Sufian & Mohamad Akbar Noor Mohamad Noor, 2012. "Determinants of Bank Performance in a Developing Economy," Global Business Review, International Management Institute, vol. 13(1), pages 1-23, February.
    16. Dolly Gaur & Dipti Ranjan Mohapatra, 2021. "Non-performing Assets and Profitability: Case of Indian Banking Sector," Vision, , vol. 25(2), pages 180-191, June.
    17. Martins, António Miguel & Serra, Ana Paula & Stevenson, Simon, 2019. "Determinants of real estate bank profitability," Research in International Business and Finance, Elsevier, vol. 49(C), pages 282-300.
    18. Ozili, Peterson, K, 2016. "Bank Profitability and Capital Regulation: Evidence from Listed and non-Listed Banks in Africa," MPRA Paper 75856, University Library of Munich, Germany.
    19. Oduor, Jacob & Karingi, Stephen & Mwaura, Stephen, 2011. "Efficiency of financial market intermediation in Kenya: A comparative analysis," Journal of Policy Modeling, Elsevier, vol. 33(2), pages 226-240, March.
    20. Fadzlan Sufian & Muzafar Shah Habibullah, 2010. "Bank-specific, Industry-specific and Macroeconomic Determinants of Bank Efficiency," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 4(4), pages 427-461, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-01695997. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.