DOI: 10.5176/2251-1997_AF30
Authors: Alireza Daghighi Asli, Maryam Shadab Shams Abad and Celine Aghabegian
Abstract:
The purpose of this study has been to determine the effect of insurance factors on companies’ productivity and efficiency in Iran insurance industry during 2007-2010. Industries with high added value have an important role in economic progress and development. As insurance is one of active industries in Iran, we evaluate its performance by using Data Envelopment Analysis (DEA) and Malmquist Productivity Index (MPI) approach. Furthermore, econometrics models (Panel Data) are used to verify and validate findings of DEA approach. The estimating results show a negative and significant relation between insurance costs of companies and their productivity. Capital reserve and assets have negative effect on companies’ efficiency which illustrates the weakness of Iranian insurance companies in investment management. Results obviously show the allocation problems efficient uses of capital.
Keywords: Data Envelopment Analysis, Malmquist Productivity Index, Productivity, Efficiency, Panel data
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