Open AccessFactors Affecting Equity and Its Impact on Insurance Premium of General Insurance Companies in Indonesia
Author(s) -
Mohamed Salim,
Sukarman Sukarman
Publication year - 2018
Publication title -
international finance and banking
Language(s) - English
Resource type - Journals
ISSN - 2374-2089
DOI - 10.5296/ifb.v5i2.14092
Subject(s) - business , equity (law) , equity capital markets , capitalization , finance , economics , monetary economics , private equity , linguistics , philosophy , political science , law
The phenomenon that was appointed to be the object of research was the decline in the percentage of premium income in general insurance companies in Indonesia while the equity value (capitalization) of the company increased. This study aims to determine the effect that occurs due to the influence of the variables of free working capital, investment, assets and equity on the acquisition of premiums. The research data is secondary data taken from the OJK website. Processing data using multiple linear regression methods, and using two sub-structure equation techniques because in this study using intervening variables. From the results of the study conclusions are as follows: Working capital does not have a significant positive effect on equity, investment has a significant positive effect on equity, assets do not have a significant effect on equity, working capital does not significantly influence the acquisition of premiums, investment does not significantly influence the acquisition of premiums, assets no significant effect on the acquisition of premiums, equity has a positive and significant effect on the acquisition of premiums. In this study, equity mediates the effect of working capital, investment, assets on the acquisition of premiums.