Browsing by Author "Anwar, Adem"

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    The Effect of Market Structure on Private Non-life Insurances’ Profitability in Ethiopia
    (Addis Ababa University, 2019-02) Anwar, Adem; Alem, Hagos (PhD)
    The main objective of this study is to examine the effect of market structure on private non-life insurances profitability in Ethiopia. The research used Relative Market Power (RMP), Structure-Conduct-Performance (SCP) and Efficiency Structure hypothesis (ESH) theory to investigate the effect of market structure on profitability of non-life insurances in Ethiopia. The study used panel data of nine Sample non-life insurances that have commenced their operation before eleven years that covers (2009-2017) period. The data used in this study are secondary that was collected from national bank of Ethiopia and respective non-life insurance companies. In line with the objectives, the study adopted a quantitative method of research approaches to test the hypothesis. The dependent variable profitability was measured using return on asset. The explanatory variables include; market share, concentration and efficiency as well as liquidity and leverage as control variables. The study used OLS to estimate the multiple regression model constructed through E-views 8 software after it made sure it satisfy the basic diagnostic tests. The result indicates market share, efficiency, and liquidity had a positive and statistically significant effect on private non-life insurances profitability in Ethiopia. On the contrary, leverage was negative and statistically significant on private non-life insurances profitability in Ethiopian. Market concentration has a negative, but insignificant relation with profitability of non-life insurance during the study period. Based on the above findings, the study suggests private non-life insurance company managers should emphasize to increase their market share maximization strategy, progressively become efficient internally and hold the adequate liquid asset to meet their obligations.