The Effects of Firm-Specific Factors on the Profitability of Non-Life Insurance Companies in Turkey


Kaya E. O.

INTERNATIONAL JOURNAL OF FINANCIAL STUDIES, vol.3, no.4, pp.510-529, 2015 (ESCI) identifier

  • Publication Type: Article / Article
  • Volume: 3 Issue: 4
  • Publication Date: 2015
  • Doi Number: 10.3390/ijfs3040510
  • Journal Name: INTERNATIONAL JOURNAL OF FINANCIAL STUDIES
  • Journal Indexes: Emerging Sources Citation Index (ESCI), Scopus, ABI/INFORM, EconLit, Directory of Open Access Journals
  • Page Numbers: pp.510-529
  • Keywords: profitability, firm-specific factors, non-life insurance companies, Turkey, PANEL-DATA, PERFORMANCE, TESTS
  • Gazi University Affiliated: Yes

Abstract

This study investigates the firm-specific factors affecting the profitability of non-life insurance companies operating in Turkey. For this purpose, data of 24 non-life insurance companies operating in Turkey from the period 2006-2013 were brought together to obtain 192 observed panel data sets. In this study, profitability is measured by two different variables: technical profitability ratio and sales profitability ratio. According to the empirical results, the firm-specific factors affecting the profitability of Turkish non-life insurance companies are the size of the company, age of the company, loss ratio, current ratio, and premium growth rate.