Growing Science » Accounting » Determinants of corporate performance: Empirical evidence from the insurance companies listed on Abu Dhabi securities exchange (ADX)

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Accounting

ISSN 2369-7407 (Online) - ISSN 2369-7393 (Print)
Quarterly Publication
Volume 7 Issue 1 pp. 143-150 , 2021

Determinants of corporate performance: Empirical evidence from the insurance companies listed on Abu Dhabi securities exchange (ADX) Pages 143-150 Right click to download the paper Download PDF

Authors: Abdullah AL-Mutairi, Hani Naser, Kamal Naser

DOI: 10.5267/j.ac.2020.10.003

Keywords: Insurance firm, Firm performance, Profitability, Abu Dhabi Securities Exchange (ADX)

Abstract: The purpose of this study is to identify factors that impact the performances of the insurance companies listed on ADX. Factors employed in this study include liquidity, general and administration expenses, risk, size, tangibility and age. The annual financial statements of all seventeen insurance companies listed on ADX covering the period 2013-2019 were sampled and analyzed through a panel regression. The analysis indicates that corporate age is the most significant positive factor that determine the profitability of the insurance companies listed on ADX. The durability of the insurance company in the GCC countries suggests that the firm has created good image, attract more customers, increased revenues to cover expenses and make profit. Thus, age is an important positive factor of the performance of insurance companies listed on ADX. Moreover, it is obvious that dissatisfied customer with the service of an insurance company will not only cease dealing with it, they deliver bad news about it by using the word of mouth and the powerful social media that play efficient role in formulating the image about the company. The outcome of this study might help investors in formulating their decision to invest in an insurance company. For instance, it helps them to focus on the age of the insurance company before they make their decision.

How to cite this paper
AL-Mutairi, A., Naser, H & Naser, K. (2021). Determinants of corporate performance: Empirical evidence from the insurance companies listed on Abu Dhabi securities exchange (ADX).Accounting, 7(1), 143-150.

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Journal: Accounting | Year: 2021 | Volume: 7 | Issue: 1 | Views: 1500 | Reviews: 0

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