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Does Insurance Matter for Corporate Firm in Malaysia? Evidence from a Pooled Data of Takaful and Conventional Insurance

The objective of this study is to investigate the factors affecting corporate demand for property takaful and insurance using data of non-financial firms listed on the main board of Bursa Malaysia. Corporate demand for general takaful and insurance products has continuously risen, evident by the...

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Main Authors: Mohamad Abdul Hamid, Jamil Osman
Format: Article
Language:English
Published: Universiti Sains Islam Malaysia 2012
Subjects:
Insurance
Takaful
Corporate demand
Panel data estimation
Online Access:http://ddms.usim.edu.my/handle/123456789/5354
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spelling my.usim-53542015-03-02T06:25:52Z Does Insurance Matter for Corporate Firm in Malaysia? Evidence from a Pooled Data of Takaful and Conventional Insurance Mohamad Abdul Hamid Jamil Osman Insurance Takaful Corporate demand Panel data estimation The objective of this study is to investigate the factors affecting corporate demand for property takaful and insurance using data of non-financial firms listed on the main board of Bursa Malaysia. Corporate demand for general takaful and insurance products has continuously risen, evident by the increasing value in premiums collection of general insurance and takaful. Over 50 percent of total general insurance and takaful premiums were contributed by business corporations. A pooled data on the corporate demand for takaful and conventional insurance were used in this study. Panel data regression models were employed for a five-year period from year 2002 to 2006. This study finds that leverage, expected bankruptcy costs, firm size, managerial ownership and tax consideration are the factors affecting corporate demand for insurance in Malaysia. Our conclusions are robust to alternative specifications of the model of GLS with Fixed Effects that help us to control for unobservable heterogeneity. This study gives some important implications for various groups like the insurers and takaful operators, shareholders and creditors as well as the regulators in reflecting factors that determine the corporate demand for takaful and insurance in Malaysia. 2012-02-28T05:53:03Z 2012-02-28T05:53:03Z 2008 Article 1823075X http://ddms.usim.edu.my/handle/123456789/5354 en vol.5 no.1 2008; Universiti Sains Islam Malaysia
institution Universiti Sains Islam Malaysia
building USIM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universit Sains Islam i Malaysia
content_source USIM Institutional Repository
url_provider http://ddms.usim.edu.my/
language English
topic Insurance
Takaful
Corporate demand
Panel data estimation
spellingShingle Insurance
Takaful
Corporate demand
Panel data estimation
Mohamad Abdul Hamid
Jamil Osman
Does Insurance Matter for Corporate Firm in Malaysia? Evidence from a Pooled Data of Takaful and Conventional Insurance
description The objective of this study is to investigate the factors affecting corporate demand for property takaful and insurance using data of non-financial firms listed on the main board of Bursa Malaysia. Corporate demand for general takaful and insurance products has continuously risen, evident by the increasing value in premiums collection of general insurance and takaful. Over 50 percent of total general insurance and takaful premiums were contributed by business corporations. A pooled data on the corporate demand for takaful and conventional insurance were used in this study. Panel data regression models were employed for a five-year period from year 2002 to 2006. This study finds that leverage, expected bankruptcy costs, firm size, managerial ownership and tax consideration are the factors affecting corporate demand for insurance in Malaysia. Our conclusions are robust to alternative specifications of the model of GLS with Fixed Effects that help us to control for unobservable heterogeneity. This study gives some important implications for various groups like the insurers and takaful operators, shareholders and creditors as well as the regulators in reflecting factors that determine the corporate demand for takaful and insurance in Malaysia.
format Article
author Mohamad Abdul Hamid
Jamil Osman
author_facet Mohamad Abdul Hamid
Jamil Osman
author_sort Mohamad Abdul Hamid
title Does Insurance Matter for Corporate Firm in Malaysia? Evidence from a Pooled Data of Takaful and Conventional Insurance
title_short Does Insurance Matter for Corporate Firm in Malaysia? Evidence from a Pooled Data of Takaful and Conventional Insurance
title_full Does Insurance Matter for Corporate Firm in Malaysia? Evidence from a Pooled Data of Takaful and Conventional Insurance
title_fullStr Does Insurance Matter for Corporate Firm in Malaysia? Evidence from a Pooled Data of Takaful and Conventional Insurance
title_full_unstemmed Does Insurance Matter for Corporate Firm in Malaysia? Evidence from a Pooled Data of Takaful and Conventional Insurance
title_sort does insurance matter for corporate firm in malaysia? evidence from a pooled data of takaful and conventional insurance
publisher Universiti Sains Islam Malaysia
publishDate 2012
url http://ddms.usim.edu.my/handle/123456789/5354
_version_ 1645151651342843904
score 13.222552

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