PENGARUH FAKTOR INTERNAL PERUSAHAAN TERHADAP PROFITABILITAS PERUSAHAAN ASURANSI JIWA DI INDONESIA
DOI:
https://doi.org/10.25170/jm.v20i1.4813Keywords:
Profitability, Company Age, Tangibility and LeverageAbstract
The influence of foreign ownership on company performance and the influence of company internal factors on the profitability of companies have been widely studied by many researchers. In 2020, the conventional life insurance business consisted of 23 joint venture life insurance and 30 national private life insurance companies. Even though there are fewer in number, joint venture life insurance companies have larger assets and can make a profit, while national private life insurance companies have smaller assets and record losses. All conventional life insurance companies are influenced by the same external company factors, for example economic, demography and regulatory factors. Therefore, a research on the influence of internal company factors on company performance is becoming important.
This study uses published financial reports from 16 joint venture life insurance companies and 16 national private life insurance companies for the period 2016 to 2020. The internal factors studied are size (assets), equity, age, liquidityu, tangibility, leverage and loss ratio. The data was processed using panel data regression analysis. Size (assets), equity, liquidity, and loss ratio do not have a significant effet on profitability, both in joint venture life insurance companies and in national private life insurance companies. Company age has a positive and significant effect on profitability of joint venture life insurance companies but does not have a significant effect on national private life insurance companies. Meanwhile, tangibility and leverage have a negative and significant effect on the profitability of national private life insurance companies but do not have significant effect on joint venture life insurance companies.
References
Adams, M. (1996). Investment Earnings and the Characteristics of Life Insurance Firms: New Zealand Evidence. Australian Journal of Management, Vol.21, No.1, 41-55
Ajao, M.G. and Ogieriakhi E. (2018). Firm Specific Factors and Performance of Insurance Firms in Nigeria. Amity Journal of Finance, Vol.3, No.1, 14-28.
Akotey, J.O., Sackey, F.G., Amoah, L., and Manso, R.F. (2013). The financial performance of life insurance companies in Ghana. The Journal of Risk Finance, Vol.14, No.3, 286-302
Almajali, A.Y., Alamro, S.A., and Al-Soub, Y.Z. (2012). Factors Affecting the Financial Performance of Jordanian Insurance Companies Listed at Amman Stock Exchange. Journal of Management Research, Vol.4, No.2, 266-289.
Almashhadani HA, Almashhadani M (2022). The Impact of Ownership on Profitability: An Conceptual Study. International Journal of Business and Management Invention (IJBMI), Vol.11, Issues 6 Ser III, 01-06.
Asosiasi Asuransi Jiwa Indonesia, https://aaji.or.id/TentangKami/profil-singkat diakses tanggal 08 Oktober 2022
Ayele, A.G. (2012). Factors Affecting Profitability of Insurance Companies in Ethiopia: Panel Evidence. Addis Ababa, Ethiopia: Thesis Addis Ababa University.
Barney, J (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, Vol 17, No. 1, 99-120.
Bawa, S.K., Chattha, S. (2013). Financial Performance of Life Insurers in Indian Insurance Industry. Pacific Business Review International, Vol.6, No.5.
Berhe, T.A., Kaur, J. (2017). Determinants of insurance companies’ profitability Analysis of insurance sector in Ethiopia. International Journal of Research in Finance and Marketing, Vol.7, No.4, 124-137.
Bhattarai, B.P. (2020). Factors Influencing Profitability of Insurance Companies in Nepal. International Journal of Management, Vol.11, No.9, 8-14.
Charumathi, B. (2012). On the Determinants of Profitability of Indian Life Insurers – An Empirical Study. Proceedings of the World Congress on Engineering, Vol.1.
Connelly, J.T. and Limpaphayom, P. (2004). Board Characteristics and Firm Performance: Evidence from the Life Insurance Industry in Thailand. Chulanglongkorn Journal of Economics, Vol.16, No.2, 101-124
Cudiamat, A. and Siy, J.S. (2017). Determinants of Profitability in Life Insurance Companies: Evidence from the Philippines. Essay in Economics and Business Studies, 165-175.
Febriyanti, L., Raf’i, M.A., Darmawan, R.D., Kurnia, R., dan Hanggraeni, D. (2021). Kinerja keuangan perusahaan asuransi jiwa di Indonesia berdasarkan tingkat profitabilitas. Jurnal Paradigma Ekonomika, Vol.16, No.3, 607-618
Greene, W.H. and Segal, D. (2004). Profitability and Efficiency in the U.S. Life Insurance Industry. Journal of Productivity Analysis, Vol. 21, 229-247.
Hasanah, R.M. dan Siswanto, E. (2019). Kinerja Keuangan Perusahaan Asuransi Jiwa Konvensional di Indonesia Periode 2015-2018. Jurnal Riset Manajemen Sains Indonesia, Vol.10, No.1., 96-124.
Hussanie, I. and Joo, B.A. (2019). Determinants of Profitability of Life Insurers in India – Panel Evidence. International Journal of Management Studies, Vol.6, No.1(7), 58-65
Juanda, BMS dan Junaidi (2019). Ekonometrika Deret Waktu, teori dan aplikasi. IPB Press, 2012.
Kripa, D. and Ajasllari D. (2016). Factors Affecting the Profitability of Insurance Companies in Albania. European Journal of Multidisciplinary Studies, Vol.1, No.1, 352-360.
Kulustayeva, A., Jondelbayeva, A., Nurmagambetova, A., Dossayeva, A., and Bikteubayeva, A. (2020). Financial Data Reporting Analysis of the Factors Influencing on Profitability for Insurance Companies. Entrepreneurship and Sustainability Issues, Vol.7, No.3, 2394-2406.
M. Adams and M. Buckle (2003). The Determinants of corporate financial performance in the Bermuda insurance market. Applied Financial Economics, 13:2, 133-143.
Makadok R, 2011, The Four Theories of Profit and Their Joint Effects, Journal of Management, Vol.37 No.5, 2011, pp 1316-1334
Malik, H. (2011). Determinants of Insurance Companies Profitability: An Analysis of Insurance Sector of Pakistan. Academic Research International, Vol.1, No.3, 315-321
Mehari, D. and Aemiro, T. (2013). Firm Specific Factors that Determine Insurance Companies’ Performance in Ethiopia. European Scientific Journal, Vol.9, No.10, 245-255
Oktiani, I., Priyarsono, D.S., dan Andati, T. (2017). Firm Specific Factors and Macroeconomic Determinant of Life Insurance Companies’ Profitability in Indonesia. International Journal of Science and Research, Vol.1, No.1, 639-644.
Otoritas Jasa Keuangan (2021), Direktori Asuransi Triwulan IV 2021, diunduh tanggal 06 Mei 2022 dari situs World Wide Web: https://www.ojk.go.id/id/kanal/iknb/data-dan-statistik/direktori/asuransi/Pages/Direktori-Asuransi-Triwulan-IV-2021.aspx
Otoritas Jasa Keuangan (2016), Peraturan Otoritas Jasa Keuangan nomor 67/POJK.05/2016 tentang Perizinan Usaha dan Kelembagaan Perusahaan Asuransi, Perusahaan Asuransi Syariah, Perusahaan Reasuransi dan Perusahaan Reasuransi Syariah.
Otoritas Jasa Keuangan (2016), Peraturan Otoritas Jasa Keuangan nomor 71/POJK.05/2016 tentang Kesehatan Keuangan Perusahaan Asuransi dan Perusahaan Reasuransi.
Otoritas Jasa Keuangan (2021), Statistik Perasuransian 2020, diunduh tanggal 22 Oktober 2022 dari situs World Wide Web: https://www.ojk.go.id/id/kanal/iknb/data-dan-statistik /asuransi/Documents/Pages/Statistik-Perasuransian-2020/Statistik%20Perasuransian %20Indonesia%202020.pdf
Sambavisam, Y. and Ayele, A.G. (2013). A Study on the Performance of Insurance Companies in Ethiopia. International Journal of Marketing, Financial Services & Management Research, Vol.2, No.7, 138-150
Swiss Re, Sigma No 1/2012, Understanding profitability in life insurance.
Zainudin, R., Mahdzan, N.S.A., and Leong, E.S. (2018). Firm specifc internal determinants of profitability performance: an exploratory study of selected life insurance firms in Asia. Journal of Asia Business Studies, Vol.12, No.4, 533-550
Zulfikar R. Estimation Model And Selection Method of Panel Data Regression. Diunduh tanggal 11 April 2023 dari situs World Wide Web: https://www.researchgate.net/
publication/326142125_Estimation_Model_And_Selection_Method_Of_Panel_Data_Regression_An_Overview_Of_Common_Effect_Fixed_Effect_And_Random_Effect_Model/link/5d989ee2299bf1c363f973d7/download
Downloads
Published
Issue
Section
License
Copyright (c) 2024 faustinus wirasadi, Hendrian, Ami Pujiwati
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See the Effect of Open Access).
