Financial management efficiency performance of insurers and takaful operators in Malaysia

This study is aimed to assess the financial management efficiency of each insurer/takaful operator in both conventional and takaful industry. We also identify the operating system that is more efficient among the conventional and takaful system which involves 20 firms. The results from the slack-b...

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Main Authors:	Rubayah Yakob, Zulkornain Yusop, Alias Radam, Noriszura Ismail
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2014
Online Access:	http://journalarticle.ukm.my/7565/ http://journalarticle.ukm.my/7565/ http://journalarticle.ukm.my/7565/1/7116-18212-1-SM.pdf

id	ukm-7565
recordtype	eprints
spelling	ukm-75652016-12-14T06:44:29Z http://journalarticle.ukm.my/7565/ Financial management efficiency performance of insurers and takaful operators in Malaysia Rubayah Yakob, Zulkornain Yusop, Alias Radam, Noriszura Ismail, This study is aimed to assess the financial management efficiency of each insurer/takaful operator in both conventional and takaful industry. We also identify the operating system that is more efficient among the conventional and takaful system which involves 20 firms. The results from the slack-based measure (SBM) - data envelopment analysis (DEA) implied that the average insurers/takaful operators have to improve about 20% if it were to perform the best financial management practice. Clearly, the inefficiency in both functions of financial management is caused by both the input and output dimensions. This study also revealed that takaful operators exhibit a relatively more efficient financial management in terms of risk management than conventional insurers. However, it cannot be confirmed whether one type of operating system is better than the other system in terms of investment management, as the result is mixed. Penerbit Universiti Kebangsaan Malaysia 2014 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/7565/1/7116-18212-1-SM.pdf Rubayah Yakob, and Zulkornain Yusop, and Alias Radam, and Noriszura Ismail, (2014) Financial management efficiency performance of insurers and takaful operators in Malaysia. Jurnal Pengurusan, 40 . pp. 25-40. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/index
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	This study is aimed to assess the financial management efficiency of each insurer/takaful operator in both conventional and takaful industry. We also identify the operating system that is more efficient among the conventional and takaful system which involves 20 firms. The results from the slack-based measure (SBM) - data envelopment analysis (DEA) implied that the average insurers/takaful operators have to improve about 20% if it were to perform the best financial management practice. Clearly, the inefficiency in both functions of financial management is caused by both the input and output dimensions. This study also revealed that takaful operators exhibit a relatively more efficient financial management in terms of risk management than conventional insurers. However, it cannot be confirmed whether one type of operating system is better than the other system in terms of investment management, as the result is mixed.
format	Article
author	Rubayah Yakob, Zulkornain Yusop, Alias Radam, Noriszura Ismail,
spellingShingle	Rubayah Yakob, Zulkornain Yusop, Alias Radam, Noriszura Ismail, Financial management efficiency performance of insurers and takaful operators in Malaysia
author_facet	Rubayah Yakob, Zulkornain Yusop, Alias Radam, Noriszura Ismail,
author_sort	Rubayah Yakob,
title	Financial management efficiency performance of insurers and takaful operators in Malaysia
title_short	Financial management efficiency performance of insurers and takaful operators in Malaysia
title_full	Financial management efficiency performance of insurers and takaful operators in Malaysia
title_fullStr	Financial management efficiency performance of insurers and takaful operators in Malaysia
title_full_unstemmed	Financial management efficiency performance of insurers and takaful operators in Malaysia
title_sort	financial management efficiency performance of insurers and takaful operators in malaysia
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2014
url	http://journalarticle.ukm.my/7565/ http://journalarticle.ukm.my/7565/ http://journalarticle.ukm.my/7565/1/7116-18212-1-SM.pdf
first_indexed	2023-09-18T19:50:02Z
last_indexed	2023-09-18T19:50:02Z
_version_	1777406158028406784

Financial management efficiency performance of insurers and takaful operators in Malaysia

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