IDEAS home Printed from https://ideas.repec.org/a/rfh/jprjor/v9y2023i2p214-220.html
   My bibliography  Save this article

Determinants of Investment Yield of Insurance Firms in Pakistan

Author

Listed:
  • Muhammad Aleem Arshad

    (Assistant Professor of Economic, Government Graduate College of Science, Multan, Pakistan)

  • Muhammad Haneef Akhtar

    (Professor and Director, Meezan Centre of Islamic Finance (MCIF), Department of Commerce, Bahauddin Zakariya University, Multan, Pakistan)

  • Muhammad Ramzan Sheikh

    (Associate Professor of Economics, School of Economics. Bahauddin Zakariya University, Multan, Pakistan)

  • Wajeeha Sheereen

    (Department of Commerce, Bahauddin Zakariya University, Multan, Pakistan)

Abstract

Insurance sector stands strategically important in terms of risk management for the economy. Growth of the insurance sector correlates with economic growth of an economy. Investment yield stands among core goals of firms in the market. The study has investigated the determinants of investment yield of insurance companies in Pakistan based on a panel data of 37 insurance firms (life insurance and non-life insurance) listed in Pakistan Stock Exchange (PSX) covering the period from 2015-2019. Specifically, this study examines the effects of financial leverage, gross GDP growth, inflation rate, risk capital management, size of the firm, age of the firm, tangibility and solvency margins on financial performance of firms in the Insurance sector. The data was obtained from financial publications of State Bank of Pakistan (SBP) and Insurance Year Book that was published by Insurance Association of Pakistan (IAP). The findings of pooled ordinary least square (OLS) regression analysis reveal that financial leverage, GDP growth, inflation rate, risk capital management, size of firm, age of the firm and solvency margins are important determinants of investment yield of insurance firms while tangibility is identified as insignificant determinant of investment yield of insurance firms in the country.

Suggested Citation

  • 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.
    • Handle: RePEc:rfh:jprjor:v:9:y:2023:i:2:p:214-220
    as

    Download full text from publisher

    File URL: https://jprpk.com/index.php/jpr/article/view/286/467
    Download Restriction: no
    File URL: https://jprpk.com/index.php/jpr/article/view/286
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sulehri, Fiaz Ahmad & Ali, Amjad, 2020. "Impact of Political Uncertainty on Pakistan Stock Exchange (1990-1999): An Event Study Approach," MPRA Paper 104623, University Library of Munich, Germany.
    2. 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.
    3. Abdelkader Derbali & Lamia Jamel, 2018. "Determinants of performance of Tunisia insurance companies: case of life insurance," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 24(4), pages 531-542.
    4. Asif Sajid & Amjad Ali, 2018. "Inclusive Growth and Macroeconomic Situations in South Asia: An Empirical Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 7(3), pages 97-109, September.
    5. Batsirai Winmore Mazviona & Mbakisi Dube & Tendai Sakahuhwa, 2017. "An Analysis of Factors Affecting the Performance of Insurance Companies in Zimbabwe," Journal of Finance and Investment Analysis, SCIENPRESS Ltd, vol. 6(1), pages 1-2.
    6. Ali, Amjad & Audi, Marc & Nisar, Sabahat & Senturk, Ismail, 2021. "Determinants of Public Procurement Efficiency: A Comprehensive Study of Public Procurement Rules of Punjab, Pakistan," MPRA Paper 111214, University Library of Munich, Germany.
    7. Nisar, Sabahat & Asif, Rabia & Ali, Amjad, 2021. "Testing the Presence of the January Effect in Developed Economies," MPRA Paper 112548, University Library of Munich, Germany.
    8. 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.
    Full references (including those not matched with items on IDEAS)

    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. Fiaz Ahmad Sulehri & Saba Sharif, 2022. "The Impact of Firm Sustainability on Firm Growth: Evidence from USA," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(2), pages 1-15, August.
    2. Abdul Hai Rathore & Abdullah Sahi, 2022. "The impact of Corporate Governance on voluntary disclosure of R&D expenditure of USA Pharmaceutical firms," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(2), pages 34-53, August.
    3. Marc Audi & Fiaz Ahmad Sulehri & Amjad Ali & Razan Al-Masri, 2022. "An Event Based Analysis of Stock Return and Political Uncertainty in Pakistan: Revisited," International Journal of Economics and Financial Issues, Econjournals, vol. 12(5), pages 39-56, September.
    4. Alim, Wajid & Ali, Amjad & Minhas, Amna Shafiq, 2022. "The Impact of Leverage on the Firm Performance: A Case of Fertilizers Sector of Pakistan," MPRA Paper 114200, University Library of Munich, Germany.
    5. Marc Audi & Razan Al-Masri & Chan Bibi, 2022. "Challenging Assumptions about Women’s Empowerment and Economic Resources and Domestic Violence among Young Married Women in India," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(2), pages 23-33, August.
    6. Syeda Tabinda Rubab & Nadia Hanif & Syeda Ambreen Fatima Bukhari & Umer Munir & Mubasher Muhammad Kamran, 2022. "The Impact Of Financial Distress On Financial Performance Of Manufacturing Firms Listed At Pakistan Stock Exchange," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(2), pages 382-391.
    7. Kamila Suhail & Bilal Aziz, 2022. "Impact of Job Stress and Job Satisfaction on Employee Performance: Comparative Analysis between Private and Government Hospitals in Lahore," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(2), pages 16-22, August.
    8. Sadia Safdar & Azra Khan & Ihtsham Ul Haq Padda & Madiha Abid, 2022. "Linkages Among Institutions, Investment And Growth: The Case Of Developing Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(2), pages 350-361.
    9. Yannick Roussel & Amjad Ali & Marc Audi, 2021. "Measuring The Money Demand In Pakistan: A Time Series Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(1), pages 27-41, March.
    10. Khalil Ahmad & Ismail Senturk, 2021. "Health Structure, Nutrition And Economic Growth In Pakistan: A Time Series Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(1), pages 42-50, March.
    11. Fiaz Ahmad Sulehri & Usman Ahmed & Wajid Alim, 2021. "Black Economy, Financial Inclusion, Financial Liberalization Nexus: A Panel Analysis Of Developing Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(3), pages 65-77.
    12. Namra Munir & Rashid Minas Wattoo & Muhammad Latif, 2021. "Perception Of Secondary School Teachers About Parental Involvement And Students’ Academic Performance: A Comparative Study," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(3), pages 110-117.
    13. Fayyaz Hussain & Mudassar Hussain, 2021. "The Use Of E-Resources By Humanities Scholars: A Systemic Literature Review," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(3), pages 78-88.
    14. Shakil Ahmad & Muhammad Waqas Khan, 2021. "Investigating The Effect Of Foreign Direct Investment (Fdi) And Foreign Remittances On Economic Growth In Pakistan (1990-2018): A Time Series Analysis Using Ardl Model Approach," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(1), pages 1-7, March.
    15. Saba Nasir, 2022. "Entrepreneurship Opportunities and Challenges to Overcome Recession from Economy," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(1), pages 1-5, March.
    16. Faisal Khan & Dr. Ayesha Gul & Ayesha Gul & Prof. Dr. Arab Naz, 2022. "Transformational Leadership Moderates the Relationship between Servant Leadership and Disengagement," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(3), pages 481-493, December.
    17. Anam Sidra, 2021. "Role Of Supply Chain Practices In Reducing Trust Deficit On E- Business In Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(3), pages 247-252.
    18. Alim, Wajid & Ali, Amjad & Farid, Maryiam, 2021. "The Impact of Islamic Portfolio on Risk and Return," MPRA Paper 111211, University Library of Munich, Germany.
    19. Fiaz Ahmad Sulehri & Hafiz Muhammad Ahsan Khan & Mujahid Shahzad & Amjad Ali, 2023. "Beyond the Balance Sheet: Analyzing the Relationship between Corporate Governance, Financial Performance, and Stock Prices in Pakistan's Non-Bank Financial Industry," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(4), pages 88-95.
    20. Shakil Ahmad & Muhammad Waqas Khan, 2021. "Investigating The Effect Of Foreign Direct Investment (Fdi) And Foreign Remittances On Economic Growth In Pakistan (1990-2018): A Time Series Analysis Using Ardl Model Approach," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(3), pages 1-7, September.

    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:rfh:jprjor:v:9:y:2023:i:2:p:214-220. 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: Dr. Muhammad Irfan Chani (email available below). General contact details of provider: https://edirc.repec.org/data/rffhlpk.html .

    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.