Do Macroeconomic Factors Effects CARAMELS Financial Soundness Indicators? A Context of Non-Life Insurance Industry in Pakistan

International Journal of Experiential Learning Case Studies Pub Date : 2019-12-30 DOI:10.22555/ijelcs.v4i2.2688

S. Ghauri, N. Ali, Zahid Ali Chanar, Shahid Obaid

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Abstract

The research is carried out to f ind out the relationship of macroeconomic factors with the f inancial soundness indicators of CARAMELS framework for the non-life insurance industry, by using a panel data set of 22 non-life insurance companies of Pakistan from the year 2007 to 2016. The study is established on the most applicable panel data technique (random-effects model). The Hausman test proves that the random-effects model is suitable for the macroeconomic factors’ study. Based on the highest number of relationships among the variables, the results of the random-effects model indicate that macroeconomic factors (inflation and economic growth) have insignif icant relation with the CARAMELS f inancial soundness indicators. According to the author’s best knowledge, it is the f irst study that identif ies the relationship of macroeconomic factors with the CARAMELS f inancial soundness indicators, which will assist the scholars, managers and policymakers of the non-life insurance industry of Pakistan to consider the signif icant factors.

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宏观经济因素影响CARAMELS财务稳健指标吗？巴基斯坦非人寿保险业的发展背景

本研究利用2007年至2016年巴基斯坦22家非寿险公司的面板数据集，找出宏观经济因素与CARAMELS框架中非寿险行业财务稳健性指标的关系。该研究建立在最适用的面板数据技术（随机效应模型）上。Hausman检验证明随机效应模型适用于宏观经济因素的研究。基于变量之间的最高数量的关系，随机效应模型的结果表明，宏观经济因素（通货膨胀和经济增长）与财务稳健性指标的CARAMELS关系不大。据作者所知，这是第一项确定宏观经济因素与CARAMELS财务稳健性指标之间关系的研究，这将有助于巴基斯坦非人寿保险行业的学者、管理者和决策者考虑重要因素。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Experiential Learning Case Studies

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审稿时长

5 weeks