Asset Size and Profitability of Life Insurance Companies in Nigeria. A Panel Data Approach
The magnitude of a company is a crucial element in evaluating organizational ascendancy while economies of scale are an advantage for most large corporations. This study examined how the size of life insurance companies' asset base affect profitability in Nigeria between 2011 and 2021. Data on...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Danubius University
2022-12-01
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| Series: | Acta Universitatis Danubius: Oeconomica |
| Online Access: | https://dj.univ-danubius.ro/index.php/AUDOE/article/view/2047 |
| _version_ | 1797948358451527680 |
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| author | Sunday Adekunle Aduloju Oluwaleke Ebenezer Akindipe |
| author_facet | Sunday Adekunle Aduloju Oluwaleke Ebenezer Akindipe |
| author_sort | Sunday Adekunle Aduloju |
| collection | DOAJ |
| description |
The magnitude of a company is a crucial element in evaluating organizational ascendancy while economies of scale are an advantage for most large corporations. This study examined how the size of life insurance companies' asset base affect profitability in Nigeria between 2011 and 2021. Data on assets of life insurance companies and the insurance digest of the Nigerian Insurers Association (NIA) were used to determine profit after tax and asset size for the relevant period. The data's stationarity test revealed that the data are stationary at the significance levels of 1%, 5%, and 10%. Data are statistically significant because the calculated probability (F-statistic) value from the ordinary least squares regression is smaller than the 0.05 significant value. The profit after tax is accounted for by 73.8811 percent of the total assets of life insurance firms, according to the computed linear coefficient of determination (R2= 0.738811). The study's findings report that asset size affects the financial success of insurance businesses in Nigeria.
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| first_indexed | 2024-04-10T21:42:04Z |
| format | Article |
| id | doaj.art-fc5d3de8da004f93b303065e48dc6a21 |
| institution | Directory Open Access Journal |
| issn | 2065-0175 2067-340X |
| language | English |
| last_indexed | 2024-04-10T21:42:04Z |
| publishDate | 2022-12-01 |
| publisher | Danubius University |
| record_format | Article |
| series | Acta Universitatis Danubius: Oeconomica |
| spelling | doaj.art-fc5d3de8da004f93b303065e48dc6a212023-01-19T01:40:33ZengDanubius UniversityActa Universitatis Danubius: Oeconomica2065-01752067-340X2022-12-01186Asset Size and Profitability of Life Insurance Companies in Nigeria. A Panel Data ApproachSunday Adekunle Aduloju0Oluwaleke Ebenezer Akindipe1Department of Actuarial science and Insurance, University of Lagos, NigeriaUniversity of Lagos The magnitude of a company is a crucial element in evaluating organizational ascendancy while economies of scale are an advantage for most large corporations. This study examined how the size of life insurance companies' asset base affect profitability in Nigeria between 2011 and 2021. Data on assets of life insurance companies and the insurance digest of the Nigerian Insurers Association (NIA) were used to determine profit after tax and asset size for the relevant period. The data's stationarity test revealed that the data are stationary at the significance levels of 1%, 5%, and 10%. Data are statistically significant because the calculated probability (F-statistic) value from the ordinary least squares regression is smaller than the 0.05 significant value. The profit after tax is accounted for by 73.8811 percent of the total assets of life insurance firms, according to the computed linear coefficient of determination (R2= 0.738811). The study's findings report that asset size affects the financial success of insurance businesses in Nigeria. https://dj.univ-danubius.ro/index.php/AUDOE/article/view/2047 |
| spellingShingle | Sunday Adekunle Aduloju Oluwaleke Ebenezer Akindipe Asset Size and Profitability of Life Insurance Companies in Nigeria. A Panel Data Approach Acta Universitatis Danubius: Oeconomica |
| title | Asset Size and Profitability of Life Insurance Companies in Nigeria. A Panel Data Approach |
| title_full | Asset Size and Profitability of Life Insurance Companies in Nigeria. A Panel Data Approach |
| title_fullStr | Asset Size and Profitability of Life Insurance Companies in Nigeria. A Panel Data Approach |
| title_full_unstemmed | Asset Size and Profitability of Life Insurance Companies in Nigeria. A Panel Data Approach |
| title_short | Asset Size and Profitability of Life Insurance Companies in Nigeria. A Panel Data Approach |
| title_sort | asset size and profitability of life insurance companies in nigeria a panel data approach |
| url | https://dj.univ-danubius.ro/index.php/AUDOE/article/view/2047 |
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