Measuring Sustainability of Takaful Performance in Malaysia
DOI:
https://doi.org/10.53840/ijiefer8Keywords:
Takaful performance, return on asset, local Takaful companies, foreign Takaful companies, fixed effectAbstract
This paper was conducted to assess the performance of Takaful companies in Malaysia. The study attempts to examine the internal factors which are liquidity, equity return, leverage, size of firm, underwriting risk, while the external factors; gross domestic product and inflation on the performance of Takaful company which refer to return on assets. The data for this research were collected from eleven local and four foreign Takaful companies. Secondary data that was collected in this research comes from the annual financial report (balance sheet and income statements) of Takaful companies; and the World Bank Indicator for gross domestic product per capita and inflation for years 2011 to 2019. The method employed in this study is Panel Data Regression. This research found that there is a significant relationship between liquidity, equity return, underwriting risk and GDP towards the performance of Takaful companies in Malaysia. It is expected that findings from this study will contribute to the existing literature to both theoretical and managerial approaches in order to better understand the pattern of performance for both local and foreign takaful companies in Malaysia.
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Copyright (c) 2020 Noraziah Che Arshad, Nur’Afifah Abdul Halim, Tubagus Thresna Irijanto
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