The Determinants of Solvency in Insurance Companies Listed on Palestine Stock Exchange
Date
2023-05-16
Authors
Ziena Fares
AbdAlnaser Nour
Journal Title
Journal ISSN
Volume Title
Publisher
Al-Quds University - Deanship of Scientific Research
Abstract
Background: This study aimed to find the factors that influenced solvency of insurance companies which listed in PSE, so, we use a panel data for seven firms from (2012-2019), and test the impact for five independent variables: profitability, liquidity, financial leverage, investment and claims on solvency as a dependent one, and took firm size as a control variable. Accordingly, multi-regression model used and found that profitability and liquidity insignificantly affect solvency, in
converse each of financial leverage, investment and claims have a significant positive impact on solvency. accordingly, we recommend the Palestinian insurance companies to invest in surplus and liquidity, in addition to take a strict policy to accept risks.