Abstract
The subject matter of this study is the analysis of the relationship between risk assessment and firm size on financial performance. The population encompasses thirty-nine listed insurance firms in Egypt during the period 1999 – 2019, whereas a sample of nineteen insurance companies was selected. The financial assessment is a dependent variable, while the independent variable is risk assessment. This study used general linear multivariate analysis and descriptive statistics. The article is an attempt to investigate the relationship between risk assessment and firm size on financial assessment of insurance sector in Egypt. The results indicate that there is significant positive linear relationship between standard deviation of return on equity, standard deviation of return on asset, and natural logarithm of total assets with return on equity. Moreover, there is significant positive linear relationship between standard deviation of return on equity, standard deviation of return on asset and natural logarithm of total assets where on return on asset. Therefore, there is significant positive linear relationship between standard deviation of return on equity and standard deviation of return on asset on liquidity. Nevertheless, there is a negative relationship between natural logarithm of total assets.
Highlights
Insurance industry, as a financial intermediary, presentsSeveral studies were conducted to investigate the effect of risk management on financial performance in insurance industry
Selim Mankai & Aymen Belgacen (41) used simultaneous equation model to examine the relationship between capital, reinsurance and risk adjustment; they concluded that there are positive and significant relationships between control variables, performance and capital, but a negative one associated with cost of capital, while capital is positively significant associated with risk taking .Yu-Luen Ma & Yayuan Ren [30] paper investigated the relationship between insurers risk and institutional ownership on financial performance measured by; the findings denote that there is a negative relationship between institutional ownership measured by and financial performance of insures during the financial crisis of 2008, whereas the relationship between institutional ownership with risk is positive
In accordance with asymmetry information approach cited by Jing Ai & et al [10], they designed enterprise risk management quality program based on linear model, found there is positive significant relationship between enterprise risk management on return on asset in property casualty insurers; they found an insignificant relationship between size, business line diversification, capitalization, commercial and risky assets on return on assets
Summary
As a financial intermediary, presentsSeveral studies were conducted to investigate the effect of risk management on financial performance in insurance industry. Dar [3] research findings, by using multiple linear regression model to investigate relationship between risks on financial performance, indicate that there is an insignificant relationship between them, the study determined the important factors which have an effect on financial performance such as capital management risk size of firm, solvency risk, liquidity risk volume of firm, and underwriting risk in life insurance companies in India. [31] examined the relationship between sources allocations measured by (capital ratio and assets structure) on financial assessment measured by (ROE – ROA – liquidity), his study revealed that the relationship is significantly positive associated with sources allocations and risk performance in insurance companies in Egypt; the result is consistent with asymmetric information approach cited by Greenwald, Bruce and Stiglitz, Joseph E (43) , concuring with the asymmetry approach. Fei Ma (33) studied Chinese insurance firms and presented several recommendations
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
