Credit Capital Dynamics Between 2005 And 2009

953 Words Dec 12th, 2015 4 Pages
To classify the financial status in life insurers, Laeven and Perotti (2010) analyzed insurers’ solvency capital dynamics between 2005 and 2009, and used different classification methods. Thus, they concluded that there was an economic trade-off about the levels of surplus capital. Larger surplus capital would lead to higher cost in faulty capital markets, while quality and value of insurance protection decreased due to the lower level of capital surplus.
Research from Ahmed, Ahmed and Ahmed (2010) implemented the ordinary least square regression model to measure seven explanatory variables and expected their relationship with capital structure of insurance companies from 2001 to 2007 in Pakistan. They concluded that profitability, liquidity and age had negative relationships with leverage inflecting Pecking Order Theory, size, growth, tangibility and risk had positive relationships with leverage, but only growth and tangibility has statistically significant relationship with leverage in 5% alpha level. Najjar and Petrov (2011) examined the relationship in similar methodology between firm characteristics and capital structure based on the relative data of life insurers in Bahrain during 2005 and 2009. They found that tangibility of assets, firm size and liquidity had positive relationships with the capital structure while profitability and revenue growth had negatively related to the capital structure, but only profitability and growth were significantly correlated to debt…
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