Uncovering financial distress conditions and its determinant factors on insurance companies in Ethiopia.
The study examines the financial distress situation and its determinants in insurance sectors in Ethiopia. To achieve study objectives, revised Altman's 2000 is adopted to measure the financial distress situation. The study adopted an explanatory research design with an arrangement of secondary...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Public Library of Science (PLoS)
2023-01-01
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| Series: | PLoS ONE |
| Online Access: | https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0292973&type=printable |
| _version_ | 1797649565212475392 |
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| author | Samuel Godadaw Ayinaddis Habtamu Getachew Tegegne |
| author_facet | Samuel Godadaw Ayinaddis Habtamu Getachew Tegegne |
| author_sort | Samuel Godadaw Ayinaddis |
| collection | DOAJ |
| description | The study examines the financial distress situation and its determinants in insurance sectors in Ethiopia. To achieve study objectives, revised Altman's 2000 is adopted to measure the financial distress situation. The study adopted an explanatory research design with an arrangement of secondary data analysis via document analysis, quantitative approach, and deductive method of inquiry. The study used panel data from ten insurance companies over the study period 2010/11-2020/21. Descriptive and regression analyses were performed to analyze the data using STATA 14. Econometric model estimation procedures and multiple regression assumptions were tested accordingly. The random effect regression result revealed that firm-specific factors (liquidity and profitability) have a significant positive association, whereas firm size significantly negatively impacts financial distress. While the random effect regression result also proposed inflation has a positive and significant association with financial distress. However, firm-specific factors (revenue growth and leverage) have positive and negative, respectively, and macroeconomic factors (Gross Domestic Product) have positive but statically insignificant to the financial distress situation of insurance sectors in Ethiopia. |
| first_indexed | 2024-03-11T15:48:54Z |
| format | Article |
| id | doaj.art-558e0ac2faab477dbef53215494aaf20 |
| institution | Directory Open Access Journal |
| issn | 1932-6203 |
| language | English |
| last_indexed | 2024-03-11T15:48:54Z |
| publishDate | 2023-01-01 |
| publisher | Public Library of Science (PLoS) |
| record_format | Article |
| series | PLoS ONE |
| spelling | doaj.art-558e0ac2faab477dbef53215494aaf202023-10-26T05:31:44ZengPublic Library of Science (PLoS)PLoS ONE1932-62032023-01-011810e029297310.1371/journal.pone.0292973Uncovering financial distress conditions and its determinant factors on insurance companies in Ethiopia.Samuel Godadaw AyinaddisHabtamu Getachew TegegneThe study examines the financial distress situation and its determinants in insurance sectors in Ethiopia. To achieve study objectives, revised Altman's 2000 is adopted to measure the financial distress situation. The study adopted an explanatory research design with an arrangement of secondary data analysis via document analysis, quantitative approach, and deductive method of inquiry. The study used panel data from ten insurance companies over the study period 2010/11-2020/21. Descriptive and regression analyses were performed to analyze the data using STATA 14. Econometric model estimation procedures and multiple regression assumptions were tested accordingly. The random effect regression result revealed that firm-specific factors (liquidity and profitability) have a significant positive association, whereas firm size significantly negatively impacts financial distress. While the random effect regression result also proposed inflation has a positive and significant association with financial distress. However, firm-specific factors (revenue growth and leverage) have positive and negative, respectively, and macroeconomic factors (Gross Domestic Product) have positive but statically insignificant to the financial distress situation of insurance sectors in Ethiopia.https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0292973&type=printable |
| spellingShingle | Samuel Godadaw Ayinaddis Habtamu Getachew Tegegne Uncovering financial distress conditions and its determinant factors on insurance companies in Ethiopia. PLoS ONE |
| title | Uncovering financial distress conditions and its determinant factors on insurance companies in Ethiopia. |
| title_full | Uncovering financial distress conditions and its determinant factors on insurance companies in Ethiopia. |
| title_fullStr | Uncovering financial distress conditions and its determinant factors on insurance companies in Ethiopia. |
| title_full_unstemmed | Uncovering financial distress conditions and its determinant factors on insurance companies in Ethiopia. |
| title_short | Uncovering financial distress conditions and its determinant factors on insurance companies in Ethiopia. |
| title_sort | uncovering financial distress conditions and its determinant factors on insurance companies in ethiopia |
| url | https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0292973&type=printable |
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