Archives

Volume 5 Number 3 March 2019

Policy Interventions to Contemporary Challenges and the Performance of Insurance Companies in Kenya a Case Study of Jubilee Insurance Company


Authors: Benjamin O. Abongo ; Dr. Thomas Senaji ; Dr. Nancy Rintari
Pages: 61-77
DOI: doi.org/10.32861/ijefr.53.61.77
Abstract
The article sought to review the contemporary challenges and their policy interventions in the Kenyan insurance industry in terms of the external and internal challenges affecting the insurance business and which require leadership and managerial actions. The researcher reviewed the contemporary challenges and the performance of insurance companies in Kenya by looking at the external business environmental challenges and how they affect the management of Insurance companies. Secondly, the study considered how Kenyan insurance companies adapt and adjust their internal practices and processes to satisfy the changing customer expectations. The article goes further to review the critical policy issues which are required to address: changing consumer dynamics, enforce strict compliance with the stringent regulations, constant product innovations, and greater need for communication, technological disruptions, on-demand marketplace, and compensation. Using peer-reviewed literature and the published integrated annual reports of Jubilee Insurance Company Ltd; the study discussed and highlighted the policy interventions in relation to the demands of business and customers. Using Jubilee Insurance as a model insurance company in a case study, the researcher found that by combining performance driven behaviour and regular use of management control systems, Insurance Companies were able to post improved results. The Choice of Jubilee was driven by its size and stability among the Kenyan insurance companies. Jubilee has adopted an integrated reporting system which enabled the researcher to obtain the empirical information required from a secondary source. The researcher reviewed the data from the company’s integrated annual reports for the ten years from 2007 to 2017. The study looked at the control systems, including informal and formal controls and subjected these controls to a more comprehensive analysis to establish the impact of management control systems and strategy on the insurance company performance. The study suggested further empirical research to find the linkage between the policy interventions to various challenges and the performance of the insurance companies in Kenya.



Analysis of Capital Adequacy Ratio, Operational Costs of Operational Income, Net Interest Margin, and Non Performing Loan Towards Loan to Deposit Ratio 
in Go Public Conventional Banks, 2012 – 2017 Periods


Authors: Mochamad Soelton ; Tri Wahyono ; Ogie Trydianto MN ; Dian Faqihdien Suzabar ; Taufik Akbar ; Mardaconsita
Pages: 56-60
DOI: doi.org/10.32861/ijefr.53.56.60
Abstract
This research aims to identify and analyze the effect of Capital Adequacy Ratio (CAR), Operation Expense (BOPO), Net Interest Margin (NIM), and Non Performing Loan (NPL) of the Loan to Deposit Ratio (LDR) of conventional bank on the Indonesia Stock Exchange period 2012 – 2017, either simultaneously or partially. Independent variables used in this study is CAR, BOPO, NIM and NPL, while LDR as the dependent variable.The population in this research is conventional bank listed on the Indonesia Stock Exchange. The sampling technique in this research is purposive sampling. The number of samples in accordance with the prescribed criteria are as many as 35 samples. Based on the result of the research found that the variable CAR influences negatively insignificantly toward LDR, BOPO and NIM influences positively insignificantly toward LDR, while the variable NPL influences positively significantly toward CAR. But simultaneously CAR, BOPO, NIM, and NPL jointly affect the LDR.



Oil Revenues and Economic Growth in Saudi Arabia


Authors: Moayad H. Al Rasasi ; John H. Qualls ; Bander K. Algamdi
Pages: 49-55
DOI: doi.org/10.32861/ijefr.53.49.55
Abstract
This paper examines the relationship between Saudi oil revenues and the Kingdom’s economic growth over the past 47 years.  In analyzing the data that are needed for this analysis, problems were encountered with the basic real GDP and government oil revenue data that are typically used.  The most widely-used measure of non-oil private sector activity that is available, the Non-Oil Private Institutional Sector GDP, does not include the Gross Value Added of all of the private activities, omitting over SAR 80 billion of real activity (in 2010 prices).  A new series was constructed, consisting of all of the non-oil private activities, including the recently corporatized/privatized companies.  In addition, the oil revenue data prior to 1987 were found to be unsatisfactory for use as published, due to their being based on the 354-355 day Hijra calendar.  A new conversion methodology, based on a recently published paper by Qualls et al. (2017), was applied, and the pre-1987 data were converted to a consistent Gregorian basis with good results.  The two series were determined to have a unit root of order one, with a highly significant long-run relationship.  An error-correction model was then estimated, and highly significant short- and long-run relationships were found.  A Ganger Causality test was performed, with the results confirming the ECM’s results, with real government oil revenue growth “Granger-causing” real private-sector GDP growth.  Finally, the new non-oil activity GDP measure produced better results than did the traditionally-used Non-Oil Private Sector GDP.