The Impacts of Risk Management Structure on Efficiency Performance in Politically Connected Malaysian General Insurance Companies
In today’s challenging business world, insurers should focus on improving their competitive advantages to secure increased profits and reduced costs. This study investigates whether political connections affect the relationship between risk management and the operating efficiency of general insura...
| Main Authors: | , , , |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
2015
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| Subjects: | |
| Online Access: | http://umpir.ump.edu.my/id/eprint/10966/1/The%20Impacts%20of%20Risk%20Management%20Structure%20on%20Efficiency%20Performance%20in%20Politically%20Connected%20Malaysian%20General%20Insurance%20Companies.pdf |
| _version_ | 1796990898083463168 |
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| author | Qian, Long Kweh Noor Azlinna, Azizan Irene, Wei Kiong Ting Wen-Min, Lu |
| author_facet | Qian, Long Kweh Noor Azlinna, Azizan Irene, Wei Kiong Ting Wen-Min, Lu |
| author_sort | Qian, Long Kweh |
| collection | UMP |
| description | In today’s challenging business world, insurers should focus on improving their competitive advantages to secure
increased profits and reduced costs. This study investigates whether political connections affect the relationship
between risk management and the operating efficiency of general insurance companies operating in Malaysia for the
period 2008-2011. First, this research applies the two-stage data envelopment analysis (DEA) methodology,
decomposing the typical two-stage operating process of general insurance companies: marketing efficiency and
profitability efficiency of the sample firms. The sample firms have to first improve their marketing efficiency, and
then proceed to improve their profitability efficiency. Second, this study applies panel data regression to test the
impact of risk management on general insurers’ performance. Consistent with prior studies, we rerun our regression
analysis using Tobit regression. Consistently, we find that risk management only has a negative impact on the
operating efficiency of Malaysian general insurers with political connections. |
| first_indexed | 2024-03-06T11:58:20Z |
| format | Conference or Workshop Item |
| id | UMPir10966 |
| institution | Universiti Malaysia Pahang |
| language | English |
| last_indexed | 2024-03-06T11:58:20Z |
| publishDate | 2015 |
| record_format | dspace |
| spelling | UMPir109662022-05-25T02:43:52Z http://umpir.ump.edu.my/id/eprint/10966/ The Impacts of Risk Management Structure on Efficiency Performance in Politically Connected Malaysian General Insurance Companies Qian, Long Kweh Noor Azlinna, Azizan Irene, Wei Kiong Ting Wen-Min, Lu HD28 Management. Industrial Management In today’s challenging business world, insurers should focus on improving their competitive advantages to secure increased profits and reduced costs. This study investigates whether political connections affect the relationship between risk management and the operating efficiency of general insurance companies operating in Malaysia for the period 2008-2011. First, this research applies the two-stage data envelopment analysis (DEA) methodology, decomposing the typical two-stage operating process of general insurance companies: marketing efficiency and profitability efficiency of the sample firms. The sample firms have to first improve their marketing efficiency, and then proceed to improve their profitability efficiency. Second, this study applies panel data regression to test the impact of risk management on general insurers’ performance. Consistent with prior studies, we rerun our regression analysis using Tobit regression. Consistently, we find that risk management only has a negative impact on the operating efficiency of Malaysian general insurers with political connections. 2015 Conference or Workshop Item PeerReviewed application/pdf en http://umpir.ump.edu.my/id/eprint/10966/1/The%20Impacts%20of%20Risk%20Management%20Structure%20on%20Efficiency%20Performance%20in%20Politically%20Connected%20Malaysian%20General%20Insurance%20Companies.pdf Qian, Long Kweh and Noor Azlinna, Azizan and Irene, Wei Kiong Ting and Wen-Min, Lu (2015) The Impacts of Risk Management Structure on Efficiency Performance in Politically Connected Malaysian General Insurance Companies. In: Asian Academy Of Management , 2-5 Oct 2015 , Penang. . (Unpublished) |
| spellingShingle | HD28 Management. Industrial Management Qian, Long Kweh Noor Azlinna, Azizan Irene, Wei Kiong Ting Wen-Min, Lu The Impacts of Risk Management Structure on Efficiency Performance in Politically Connected Malaysian General Insurance Companies |
| title | The Impacts of Risk Management Structure on Efficiency Performance in Politically Connected Malaysian General Insurance Companies |
| title_full | The Impacts of Risk Management Structure on Efficiency Performance in Politically Connected Malaysian General Insurance Companies |
| title_fullStr | The Impacts of Risk Management Structure on Efficiency Performance in Politically Connected Malaysian General Insurance Companies |
| title_full_unstemmed | The Impacts of Risk Management Structure on Efficiency Performance in Politically Connected Malaysian General Insurance Companies |
| title_short | The Impacts of Risk Management Structure on Efficiency Performance in Politically Connected Malaysian General Insurance Companies |
| title_sort | impacts of risk management structure on efficiency performance in politically connected malaysian general insurance companies |
| topic | HD28 Management. Industrial Management |
| url | http://umpir.ump.edu.my/id/eprint/10966/1/The%20Impacts%20of%20Risk%20Management%20Structure%20on%20Efficiency%20Performance%20in%20Politically%20Connected%20Malaysian%20General%20Insurance%20Companies.pdf |
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