A panel data analysis on the determininants of profitabiltiy of life insurance firms in the Philippines for the period 2006-2015

Date of Publication

2017

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Management of Financial Institutions

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Kenneth L. Yumang

Defense Panel Chair

Edralin C. Lim

Defense Panel Member

Rene B. Betita

Tyrone Panzer L. Chan Pao

Abstract/Summary

The purpose of this research is to identify the determinants of the profitability of life insurance companies in the Philippines by investigating the relationship of the profitability measures, two-year overall operating ratio and investment yield, against the firm-specific factors namely firm growth, firm size, leverage, liquidity, and tangibility of assets and macroeconomic factors, specifically gross domestic product (GDP) and interest rates. The researchers used a sample size of twenty-two (22) life insurance firms over the course of ten (10) years from 2006-2015. A panel data analysis was conducted to determine significant independent variables. As a result, it was determined that 8.39% of the independent variables accounted for the changes in the operating ratio. Significant variables were firm size and tangibility of assets which showed a positive and negative relationship, respectively. As for the investment yield, 5.72% of the independent variables accounted for its changes. Both firm size and tangibility of assets showed a negative significant relationship towards the profitability ratio. With these results, it can be said that firm specific factors contribute to the profitability of life insurance companies.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU19971

Shelf Location

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

Physical Description

iv, 118, 4 leaves ; 29 cm. + 1 computer disc ; 4 3/4 in.

Keywords

Life insurance--Philippines; Profit--Philippines

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