IS THERE A CAUSAL RELATIONSHIP BETWEEN FINANCIAL PERFORMANCE AND PREMIUM PRODUCTION? EVIDENCE FROM TURKISH INSURANCE INDUSTRY
This study aims at determining the causal link between financial performance and premium production of non-life insurance companies. The relation between the financial performance and premium production is explored employing data from the 2011-2019 period for eight Turkish non-life insurance compani...
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Mehmet Akif Ersoy University
2023-08-01
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| Series: | Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi |
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| Online Access: | https://dergipark.org.tr/en/download/article-file/2836974 |
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| author | Murat Belke Mohsin Shabir Özcan Işık |
| author_facet | Murat Belke Mohsin Shabir Özcan Işık |
| author_sort | Murat Belke |
| collection | DOAJ |
| description | This study aims at determining the causal link between financial performance and premium production of non-life insurance companies. The relation between the financial performance and premium production is explored employing data from the 2011-2019 period for eight Turkish non-life insurance companies. In the first stage of the analysis, a hybrid model including LOPCOW, SWARA II, and MARCOS methods is proposed to determine companies’ financial performance values. In this stage, a novel integrated weighting method for calculating criterion weights is applied based on objective information and judgements of decision-makers. In the second stage, the association between financial performance and premium production is investigated by correlation analysis. In the last stage, the causality linkage between the two variables is estimated using a panel causality test developed by Dumitrescu and Hurlin (2012). According to the results obtained from the panel causality test, the bidirectional causality relation exists between financial performance and premium production. Besides, the individual panel causality results reveal that bidirectional causality is valid for only Allianz and Anadolu insurance companies, which had an average share of over 35% in total non-life premium production during the analysis period. The paper provides fresh evidence on the association between the financial performance and premium production, particularly from the Turkish context. |
| format | Article |
| id | doaj-art-040f67e58a8e4ec287cfd99dc0e993da |
| institution | Kabale University |
| issn | 2149-1658 |
| language | English |
| publishDate | 2023-08-01 |
| publisher | Mehmet Akif Ersoy University |
| record_format | Article |
| series | Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi |
| spelling | doaj-art-040f67e58a8e4ec287cfd99dc0e993da2025-01-27T13:23:57ZengMehmet Akif Ersoy UniversityMehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi2149-16582023-08-011021388141210.30798/makuiibf.1220299273IS THERE A CAUSAL RELATIONSHIP BETWEEN FINANCIAL PERFORMANCE AND PREMIUM PRODUCTION? EVIDENCE FROM TURKISH INSURANCE INDUSTRYMurat Belke0https://orcid.org/0000-0002-3299-7162Mohsin Shabir1https://orcid.org/0000-0002-1315-8654Özcan Işık2https://orcid.org/0000-0003-2230-8738BURDUR MEHMET AKİF ERSOY ÜNİVERSİTESİSchool of Economics, Shandong University of Finance and EconomicsSİVAS CUMHURİYET ÜNİVERSİTESİ, ZARA VEYSEL DURSUN UYGULAMALI BİLİMLER YÜKSEKOKULU, FİNANS VE BANKACILIK BÖLÜMÜThis study aims at determining the causal link between financial performance and premium production of non-life insurance companies. The relation between the financial performance and premium production is explored employing data from the 2011-2019 period for eight Turkish non-life insurance companies. In the first stage of the analysis, a hybrid model including LOPCOW, SWARA II, and MARCOS methods is proposed to determine companies’ financial performance values. In this stage, a novel integrated weighting method for calculating criterion weights is applied based on objective information and judgements of decision-makers. In the second stage, the association between financial performance and premium production is investigated by correlation analysis. In the last stage, the causality linkage between the two variables is estimated using a panel causality test developed by Dumitrescu and Hurlin (2012). According to the results obtained from the panel causality test, the bidirectional causality relation exists between financial performance and premium production. Besides, the individual panel causality results reveal that bidirectional causality is valid for only Allianz and Anadolu insurance companies, which had an average share of over 35% in total non-life premium production during the analysis period. The paper provides fresh evidence on the association between the financial performance and premium production, particularly from the Turkish context.https://dergipark.org.tr/en/download/article-file/2836974insurancefinancial performancepremium productionlopcowswara iimarcospanel causality.sigortafinansal performansprim üretimilopcowswara iimarcospanel nedensellik. |
| spellingShingle | Murat Belke Mohsin Shabir Özcan Işık IS THERE A CAUSAL RELATIONSHIP BETWEEN FINANCIAL PERFORMANCE AND PREMIUM PRODUCTION? EVIDENCE FROM TURKISH INSURANCE INDUSTRY Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi insurance financial performance premium production lopcow swara ii marcos panel causality. sigorta finansal performans prim üretimi lopcow swara ii marcos panel nedensellik. |
| title | IS THERE A CAUSAL RELATIONSHIP BETWEEN FINANCIAL PERFORMANCE AND PREMIUM PRODUCTION? EVIDENCE FROM TURKISH INSURANCE INDUSTRY |
| title_full | IS THERE A CAUSAL RELATIONSHIP BETWEEN FINANCIAL PERFORMANCE AND PREMIUM PRODUCTION? EVIDENCE FROM TURKISH INSURANCE INDUSTRY |
| title_fullStr | IS THERE A CAUSAL RELATIONSHIP BETWEEN FINANCIAL PERFORMANCE AND PREMIUM PRODUCTION? EVIDENCE FROM TURKISH INSURANCE INDUSTRY |
| title_full_unstemmed | IS THERE A CAUSAL RELATIONSHIP BETWEEN FINANCIAL PERFORMANCE AND PREMIUM PRODUCTION? EVIDENCE FROM TURKISH INSURANCE INDUSTRY |
| title_short | IS THERE A CAUSAL RELATIONSHIP BETWEEN FINANCIAL PERFORMANCE AND PREMIUM PRODUCTION? EVIDENCE FROM TURKISH INSURANCE INDUSTRY |
| title_sort | is there a causal relationship between financial performance and premium production evidence from turkish insurance industry |
| topic | insurance financial performance premium production lopcow swara ii marcos panel causality. sigorta finansal performans prim üretimi lopcow swara ii marcos panel nedensellik. |
| url | https://dergipark.org.tr/en/download/article-file/2836974 |
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