The Impact of Financial Management Elements and Behavioral Intention on the Financial Performance

Abstract

To better understand how behavioural intention (BI) and financial management elements (FME) affect insurance companies' financial performance (FP), this study will examine the relationship. Two hundred seventy-seven insurance (277) firms in Iraq were questioned for this cross-sectional study. Using principal component analysis, we were able to minimise the number of variables and pinpoint the key parts that best represented the FME, BI, financial health and performance of insurance businesses. Apart from that, we proposed and evaluated two hypotheses regarding the significance of the association between these three insurance company characteristics. PLS-SEM, or partial least squares-structural equation modeling, was utilised to analyse the data. Note that a better financial success of insurance firms is correlated with robust FME. The results strongly correlate with the insurance companies' FP and BI. Additionally, it has been discovered that BI and FP have a strong positive link. The results proved that BI possess a mediating impact on the relationship between FP and FME. Despite the abundance of material on FP, FME, and BI, there is a dearth of work on effective conceptualisation. This could have impacted how the study was conceptualised and the vague notion of BI. As a result, we do not assert very sophisticated measuring notions in this study. In addition, while many of the studies that are now available have examined FP statistically, fundamentally qualitative process elements can better account for variations in the financial success concept. Hence, more research is required to hone the qualitative notions used in this study. The adoption of FME that give insurance businesses a persistent BI advantage over their rivals must coincide with management efforts to improve FP at insurance companies. This study demonstrates the importance of determining the role of BI in the association between FME and FP to understand the FP of insurance companies. It draws on social economics, management, and accounting strands. While many of the studies that are currently in existence have used quantitative methods to assess FP, process elements or antecedents that are fundamentally qualitative can be used to explain variations in the FP notion. Therefore, this study recommends improving the notion of FP and endogeneity accounting.