The effect of capital structure on performance of insurance companies: Evidence from Jordan

Bibliographic Details
Format: Restricted Document
_version_ 1860797309008216064
building INTELEK Repository
collection Online Access
collectionurl https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection407072
date 2019-07-16 14:48:02
format Restricted Document
id 12186
institution UniSZA
originalfilename 6486-01-FH02-FPP-19-30896.pdf
person liza azi
recordtype oai_dc
resourceurl https://intelek.unisza.edu.my/intelek/pages/view.php?ref=12186
spelling 12186 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=12186 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection407072 Restricted Document Article Journal application/pdf 10 1.6 Adobe Acrobat Pro DC 20 Paper Capture Plug-in liza azi 2019-07-16 14:48:02 6486-01-FH02-FPP-19-30896.pdf UniSZA Private Access The effect of capital structure on performance of insurance companies: Evidence from Jordan International Journal of Accounting, Finance and Business (IJAFB) The relationship between capital structure and profit cannot be ignored because the improvement in profitability is essential for the company to continue its business. The objective of the paper to examine the relationship between capital structures on the profitability of the Jordanian insurance firms. A sample of 19 insurance firms listed on the Amman Stock Exchange for a period of 10 years from 2008 – 2017 was selected. The regression analysis and correlations are used to estimate the functions relating to profitability that measured by return on equity (ROE) and Tobin's Q, with measures of capital structure: Short term debt (STD), Long term debt (LTD) and Equity financing (TQ). Also, inflation rate and sales growth are used as control variables. Empirical results show (STD) and (LTD) are positively correlated with the (ROE) while negatively correlated with Tobin's Q, (ETQ is positive correlated with all profitability measures, the result also shows that financial leverage is positively significant to profitability. The results confirmed that an increase in leverage position is associated with an increase in profitability. 4 20 64-73
spellingShingle The effect of capital structure on performance of insurance companies: Evidence from Jordan
summary The relationship between capital structure and profit cannot be ignored because the improvement in profitability is essential for the company to continue its business. The objective of the paper to examine the relationship between capital structures on the profitability of the Jordanian insurance firms. A sample of 19 insurance firms listed on the Amman Stock Exchange for a period of 10 years from 2008 – 2017 was selected. The regression analysis and correlations are used to estimate the functions relating to profitability that measured by return on equity (ROE) and Tobin's Q, with measures of capital structure: Short term debt (STD), Long term debt (LTD) and Equity financing (TQ). Also, inflation rate and sales growth are used as control variables. Empirical results show (STD) and (LTD) are positively correlated with the (ROE) while negatively correlated with Tobin's Q, (ETQ is positive correlated with all profitability measures, the result also shows that financial leverage is positively significant to profitability. The results confirmed that an increase in leverage position is associated with an increase in profitability.
title The effect of capital structure on performance of insurance companies: Evidence from Jordan
title_full The effect of capital structure on performance of insurance companies: Evidence from Jordan
title_fullStr The effect of capital structure on performance of insurance companies: Evidence from Jordan
title_full_unstemmed The effect of capital structure on performance of insurance companies: Evidence from Jordan
title_short The effect of capital structure on performance of insurance companies: Evidence from Jordan
title_sort effect of capital structure on performance of insurance companies: evidence from jordan