This survey research paper explores the methods most commonly used in over 190 studies determining life insurance efficiency. The purpose is to provide an overview of life insurance efficiency studies and guidance as to the (dis)advantages of the different techniques used plus their applicability to life insurance. An evaluation of the different approaches is undertaken plus an examination of the numbers and trends of methods and aspects of life insurance efficiency measurement. This paper also discusses the fundamental elements of life insurance efficiency estimation, such as the set-up and form of outputs and inputs. Findings include that the focus of life insurance efficiency studies considering individual nations has changed. Additionally data envelope analysis is the technique used most commonly with stochastic frontier analysis next. Another main result is that output proxies (akin to) premiums and investment income is utilized most. This study allows practitioners to determine the best techniques to employ in life insurance efficiency studies. Moreover an evaluation by regulators of the value and applicability of such studies is facilitated. This article builds upon those previous to enumerate and investigate the approaches most commonly used in over 190 papers determining life insurance efficiency and has described the advantages and disadvantages of these methods. Therefore an assessment of the overall results of efficiency studies is possible. In addition ideas for potential further research are discussed. Consequently this review will be useful to both practitioners and regulators concerned with this area.
The positive effect of globalization has continued to impact FDI inflow to developing countries during the last decade except for the rising influence of political risk in host locations. Mixed outcomes have trailed the findings related to the studies on FDI and political risk relationship and in particular on African countries like Nigeria. This paper investigated the effect of political risk on FDI inflow to Nigeria using secondary data from 2000 to 2014 using simple linear regression. The study combined from select variables, the institutional factors with location determinants peculiar to Nigeria’s risk environment. It is found that political risk holds a positive and significant association with FDI to Nigeria but not close enough to inhibit the inflow of foreign investment to the country. However, the findings provide a strong basis for policy shift in relation to security, country promotion and rebranding as well strengthening of institutions.
The growing field of behavioral economics (BE) has revolutionized the way we look at economic behavior at micro and macro levels. Importance of foreign direct investment (FDI) appeals for analysis of decisions made regarding it to be assessed from expanding view of BE. This research provides overview of previous studies and focuses on the case of Bosnia and Herzegovina (B&H) as representative of emerging markets to investigate motivations for investing into this country by temporarily present foreign companies. Empirical analysis was based on the questionnaire that was disseminated among foreign investors to B&H. Questionnaire contained motivations for investing in B&H, where examined motivation factors were divided in two groups; namely irrational and rational ones. Choice of methodology was narrowed due to moderate sample size, but consisting of quality the sample members. In order to analyze data, descriptive statistics, correlation analysis and regression analysis were used. By regressing two groups of predictors on annual amount of foreign investments to B&H, it was shown that the highest motivation for investing was business instinct.
The primary objective of this research is to investigate the relationship between tax avoidance, income and cash held in companies listed on the Tehran Stock Exchange from 2009 to 2013. In this regard, avoidance of paying taxes is independent variables and criteria for evaluating financial performance; namely return on assets, return on average equities, economic value added, market value added, and the ratio of free cash flow are considered as dependent variables. Firm size and financial leverage are also considered as control variables. In general, the statistical method used in this research is correlation and regression. The results of the research showed that there was a significant and reverse relationship between avoidance of paying taxes and performance evaluation criteria, cash held.
Clustering is absolutely useful information to explore data structures and has been employed in many places. It organizes a set of objects into similar groups called clusters, and the objects within one cluster are both highly similar and dissimilar with the objects in other clusters. The K-mean, C-mean, Fuzzy C-mean and Kernel K-mean algorithms are the most popular clustering algorithms for their easy implementation and fast work, but in some cases we cannot use these algorithms. Regarding this, in this paper, a hybrid model for customer clustering is presented that is applicable in five banks of Fars Province, Shiraz, Iran. In this way, the fuzzy relation among customers is defined by using their features described in linguistic and quantitative variables. As follows, the customers of banks are grouped according to K-mean, C-mean, Fuzzy C-mean and Kernel K-mean algorithms and the proposed Fuzzy Relation Clustering (FRC) algorithm. The aim of this paper is to show how to choose the best clustering algorithms based on density-based clustering and present a new clustering algorithm for both crisp and fuzzy variables. Finally, we apply the proposed approach to five datasets of customer's segmentation in banks. The result of the FCR shows the accuracy and high performance of FRC compared other clustering methods.
During the past two decades, there has been growing trend in Iranian banking industry due to change in banking regulations. Private sector has grown rapidly and there have been several new banks on the market, which has created very competitive market. Therefore, customer loyalty is the key factor for running a successful banking business and customer relationship management (CRM) appears to be important for the success in this industry. The primary objective of this paper is to investigate the relationship between CRM and customer loyalty in one of the oldest Iranian banks named Bank Melli Iran. The proposed study prepares a questionnaire in Likert scale and distributes it among some regular customers of this bank. The preliminary results of this survey have indicated that consumer’s gender, age and educational background had no meaningful impact on quality of services. In other words, people with different personal characteristics expect the same quality of services from banking industry and there is a positive and meaningful relationship between quality of services and customer loyalty.
This paper examines the relationship between trade credit and bank loan during the financial crisis using annual data on Tunisian exporting companies over the period 2005- 2011. Results based on 2SLS regression have shown that trade credit and bank credit were simultaneously determined and maintained a complementary effect before 2008 financial crisis. On the other side, the substitution effect has been detected between the two sources of short term financing during 2008 financial crisis. Finally, companies rely more on bank loan after the financial crisis because bankers are able to cover financial need of their customers.
Over the years, organizations have witnessed a transformational change at global market place. Integration of operations and partnership have become the key success factors for organizations. In order to achieve inclusive growth while operating in a dynamic uncertain environment, organizations irrespective of the scale of business need to stay connected across the entire value chain. The purpose of this paper is to analyze Enterprise Resource Planning (ERP) implementation process for Small and Medium Enterprises (SMEs) in India to identify the key enablers. Exhaustive survey of existing literature as a part of secondary research work, has been conducted in order to identify the critical success factors and usefulness of ERP implementation in different industrial sectors initially and examines the impact of those factors in Indian SMEs. Kernel Principal Component Analysis (KPCA) has been applied on survey response to recognize the key constructs related to Critical Success Factors (CSFs) and tangible benefits of ERP implementation. Intuitionistic Fuzzy set theory based Technique of Order Preference by Similarity to Ideal Solution (TOPSIS) method is then used to rank the respective CSFs by mapping their contribution to the benefits realized through implementing ERP. Overall this work attempts to present a guideline for ERP adoption process in the said sector utilizing the framework built upon KPCA and Intuitionistic Fuzzy TOPSIS. Findings of this work can act as guidelines for monitoring the entire ERP implementation project.
This paper investigates the impact of corporate governance on firm value measured by Tobin’s Q. Different corporate governance proxies i.e. board size, board independence, audit committee and CEO duality are interacted with firm value. A sample of 91 nonfinancial firms listed on KSE was selected over the period 2010-2014. The findings of the study show that board size and CEO duality had negative impacts on firm value. Moreover, board size, non-executive directors and audit committee had positive and significant impacts on firm value.
One of the primary tools for asset evaluation on stock market is to use price-to-earnings (P/E) ratio. The method is simple and has become popular among many investors for buy/sell decisions. In this paper, we present a comprehensive review on recent advances on the use of P/E ratio for measuring other firms’ characteristics. The survey has reviewed several studies on the relationship between P/E ratio and stock performance, estimation of transaction data, insider transaction, future growth, firm size, interest ratio, book-to-market equity, etc.