A study on the effects of firm size on the growth and profitability of selected 27 non-life insurance companies for the period 2001-2005

Date of Publication

2007

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Management of Financial Institutions

Subject Categories

Finance and Financial Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Defense Panel Member


Jonathan Uy

Frederick Halcon

Abstract/Summary

According to the report of Standard & Poor's, an international credit rating institution, the non-life insurance industry in the Philippine is performing poorly due to the companies' weak capitalization and excessive taxation. With that, there is then a need to strengthen and develop the financials of non-life insurance companies. In the financial intermediation industry today, banks merge in order to improve their financial stability and profitability. The researchers then hypothesized whether the size of a firm would be a significant indicator of growth and profitability for non-life insurance companies.

This paper shows the relationship of firm size, growth and profitability of twenty-seven (27) selected non-life insurance companies and a separate study on one (1) merged non-life insurance company for the years 2001-2005. Using panel data regression, the results state that net premiums earned and net income of non-life insurance companies were the only variables that are significantly affected by the size of the firm.

With the results generated from this study, the researchers recommend the non-life insurance industry to focus not only on managing the size of the firm but also on their operations in order to reduce costs and improve the bottom-line figures and develop the growth and profitability of non-life insurance companies.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU14179

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

59 leaves : ill. ; 28 cm.

Keywords

Insurance companies--Philippines; Insurance companies

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