Analysis of cost efficiency in GCC and Jordan's insurance sectors: DEA approach

IF 0.8 Q4 MANAGEMENT

International Journal of Business Performance Management Pub Date : 2020-05-19 DOI:10.1504/ijbpm.2020.10029545

A. Bakhouche, Welcome Sibanda, Randa AlChaar, Mohamed Boulkeroua, Eman A. Zabalawi

{"title":"Analysis of cost efficiency in GCC and Jordan's insurance sectors: DEA approach","authors":"A. Bakhouche, Welcome Sibanda, Randa AlChaar, Mohamed Boulkeroua, Eman A. Zabalawi","doi":"10.1504/ijbpm.2020.10029545","DOIUrl":null,"url":null,"abstract":"This paper provides a comprehensive analysis of cost efficiency of insurance firms operating in GCC countries and Jordan during 2009-2017. The DEA approach was applied to estimate cost efficiency and its components-allocative, pure technical and scale efficiency, inputs and outputs variables are defined according to the value-added approach, and in the second-stage regression analysis, we test a set of hypotheses on the relationship between efficiency and selected variables capturing firms' heterogeneities and other environmental variables controlling for market structure, economic conditions and governance. The results point to the substantial efficiency improvement potential in all markets under study with large discrepancies in efficiency scores across the GCC countries suggesting divergence and difference stage of sector development and heterogeneity of regulation. The findings reveal that firm-specific variables such as size, profitability, solvency and investment concentration, have impact on efficiency, while no significant difference in efficiency was found between conventional and Takaful insurance firms.","PeriodicalId":44434,"journal":{"name":"International Journal of Business Performance Management","volume":"1 1","pages":""},"PeriodicalIF":0.8000,"publicationDate":"2020-05-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"2","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Business Performance Management","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1504/ijbpm.2020.10029545","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"MANAGEMENT","Score":null,"Total":0}

引用次数: 2

Abstract

This paper provides a comprehensive analysis of cost efficiency of insurance firms operating in GCC countries and Jordan during 2009-2017. The DEA approach was applied to estimate cost efficiency and its components-allocative, pure technical and scale efficiency, inputs and outputs variables are defined according to the value-added approach, and in the second-stage regression analysis, we test a set of hypotheses on the relationship between efficiency and selected variables capturing firms' heterogeneities and other environmental variables controlling for market structure, economic conditions and governance. The results point to the substantial efficiency improvement potential in all markets under study with large discrepancies in efficiency scores across the GCC countries suggesting divergence and difference stage of sector development and heterogeneity of regulation. The findings reveal that firm-specific variables such as size, profitability, solvency and investment concentration, have impact on efficiency, while no significant difference in efficiency was found between conventional and Takaful insurance firms.

查看原文本刊更多论文

海湾合作委员会和约旦保险部门的成本效率分析:DEA方法

本文对2009-2017年在海湾合作委员会国家和约旦经营的保险公司的成本效率进行了全面分析。运用DEA方法估计成本效率及其组成部分——配置效率、纯技术效率和规模效率，并根据增值方法定义投入和产出变量，在第二阶段回归分析中，我们检验了效率与捕获企业异质性的选定变量和控制市场结构、经济条件和治理的其他环境变量之间的关系。研究结果表明，在所研究的所有市场中，效率提高的潜力都很大，海湾合作委员会国家之间的效率得分差异很大，这表明了部门发展的分歧和不同阶段以及监管的异质性。研究发现，规模、盈利能力、偿付能力和投资集中度等公司特定变量对效率有影响，而传统保险公司和回教保险公司在效率上没有显著差异。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

International Journal of Business Performance Management MANAGEMENT-

CiteScore

1.90

自引率

10.00%

发文量

期刊介绍： The most distinctive characteristic of a high performance organisation is a strong commitment to explore innovative thinking as a means of delivering a breakthrough in performance. IJBPM aims to examine both hard and soft perspectives in managing business performance, in both public and corporate organisations. Topics covered include: -Business strategy and business process re-engineering Corporate culture- Education and training, organisational learning- Ethical and environmental issues- Intellectual assets management- Innovation and knowledge management- Internet/intranet- Operations strategy- Outsourcing and strategic alliances- Modelling techniques- Performance benchmarking and measurement- Productivity and quality- Public sector management- Technological change and impact- Virtual team working.