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Factors Affecting Profitability of Insurance Companies. Evidence from Kosovo

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  • Yllka Ahmeti
  • Etem Iseni

Abstract

Profitability expresses the ability to make a profit from all the business activities of the company. It shows how efficiently management generates profit by utilizing all available resources. This paper examined the effects of specific company factors, namely independent variables such as: liquidity, company size, company age, tangible asset, leverage, company capital and growth of com-pany, on profitability represented by return on assets (ROA) and net profit margin (NPM) as a dependent variable. The sample in this study includes eleven insurance companies for the period 2015 - 2020. The regression results indicate that size, leverage and age of company, have significant effects on the ROA. Meanwhile in NPM of insurance companies in Kosovo size of company and firm growth have significant effects.

Suggested Citation

  • Yllka Ahmeti & Etem Iseni, 2022. "Factors Affecting Profitability of Insurance Companies. Evidence from Kosovo," Academicus International Scientific Journal, Entrepreneurship Training Center Albania, issue 25, pages 122-142, January.
    • Handle: RePEc:etc:journl:y:2022:i:25:p:122-142
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    References listed on IDEAS

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    1. Alhassan, Abdul Latif & Biekpe, Nicholas, 2016. "Determinants of life insurance consumption in Africa," Research in International Business and Finance, Elsevier, vol. 37(C), pages 17-27.
    2. M. Adams & M. Buckle, 2003. "The determinants of corporate financial performance in the Bermuda insurance market," Applied Financial Economics, Taylor & Francis Journals, vol. 13(2), pages 133-143.
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    Cited by:

    1. Evaggelia Siopi & Thomas Poufinas, 2023. "Impact of Internal and External Factors on the Profitability and Financial Strength of Insurance Groups," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 29(3), pages 129-149, August.

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