Modeling Investments in the Dynamic Network Performance of Insurance Companies

This study proposes a dynamic two-stage network data envelopment analysis (DEA) model with and without carry-over variables to evaluate corporate performance. Carry-over variables are those continuously held from one term to another, reflecting dynamic components. Apart from considering dynamic aspe...

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Main Authors:	Tone, Kaoru, Kweh, Qian Long, Lu, Wen-Min, Irene, Wei Kiong Ting
Format:	Article
Language:	English
Published:	Elsevier 2019
Subjects:	HG Finance
Online Access:	http://umpir.ump.edu.my/id/eprint/23339/ http://umpir.ump.edu.my/id/eprint/23339/ http://umpir.ump.edu.my/id/eprint/23339/ http://umpir.ump.edu.my/id/eprint/23339/1/Modeling%20investments%20in%20the%20dynamic.pdf

id	ump-23339
recordtype	eprints
spelling	ump-233392019-07-26T08:30:23Z http://umpir.ump.edu.my/id/eprint/23339/ Modeling Investments in the Dynamic Network Performance of Insurance Companies Tone, Kaoru Kweh, Qian Long Lu, Wen-Min Irene, Wei Kiong Ting HG Finance This study proposes a dynamic two-stage network data envelopment analysis (DEA) model with and without carry-over variables to evaluate corporate performance. Carry-over variables are those continuously held from one term to another, reflecting dynamic components. Apart from considering dynamic aspects, the DEA model called dynamic slacks-based measure with network structure can address various inputs and outputs at both stages and multiple intermediates that link the two stages. We demonstrate the applicability of the proposed model under the assumption of variable returns to scale to the performance evaluation of 30 insurance companies in Malaysia from 2008 to 2016. Specifically, we gauge resource management and investment efficiencies as the two production stages of insurance companies. While investment asset is considered the carry-over variable, investment income is treated as one of the ultimate outputs. Results indicate that the discriminatory power of the overall performance is high when we consider investments, particularly investment assets, as a carry-over variable. Moreover, we employ a multi-criteria decision analysis to compare all insurance companies in a common setting, including each ratio of liquidity, profitability, and leverage. The decision to include these ratios is made after performing regression analyses. This study entails practical implications for insurers and policy makers in terms of resource management and investment after considering investments and relevant performance ratios Elsevier 2019 Article PeerReviewed pdf en http://umpir.ump.edu.my/id/eprint/23339/1/Modeling%20investments%20in%20the%20dynamic.pdf Tone, Kaoru and Kweh, Qian Long and Lu, Wen-Min and Irene, Wei Kiong Ting (2019) Modeling Investments in the Dynamic Network Performance of Insurance Companies. Omega, 88. pp. 237-247. ISSN 0305-0483 https://doi.org/10.1016/j.omega.2018.09.005 https://doi.org/10.1016/j.omega.2018.09.005
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Malaysia Pahang
building	UMP Institutional Repository
collection	Online Access
language	English
topic	HG Finance
spellingShingle	HG Finance Tone, Kaoru Kweh, Qian Long Lu, Wen-Min Irene, Wei Kiong Ting Modeling Investments in the Dynamic Network Performance of Insurance Companies
description	This study proposes a dynamic two-stage network data envelopment analysis (DEA) model with and without carry-over variables to evaluate corporate performance. Carry-over variables are those continuously held from one term to another, reflecting dynamic components. Apart from considering dynamic aspects, the DEA model called dynamic slacks-based measure with network structure can address various inputs and outputs at both stages and multiple intermediates that link the two stages. We demonstrate the applicability of the proposed model under the assumption of variable returns to scale to the performance evaluation of 30 insurance companies in Malaysia from 2008 to 2016. Specifically, we gauge resource management and investment efficiencies as the two production stages of insurance companies. While investment asset is considered the carry-over variable, investment income is treated as one of the ultimate outputs. Results indicate that the discriminatory power of the overall performance is high when we consider investments, particularly investment assets, as a carry-over variable. Moreover, we employ a multi-criteria decision analysis to compare all insurance companies in a common setting, including each ratio of liquidity, profitability, and leverage. The decision to include these ratios is made after performing regression analyses. This study entails practical implications for insurers and policy makers in terms of resource management and investment after considering investments and relevant performance ratios
format	Article
author	Tone, Kaoru Kweh, Qian Long Lu, Wen-Min Irene, Wei Kiong Ting
author_facet	Tone, Kaoru Kweh, Qian Long Lu, Wen-Min Irene, Wei Kiong Ting
author_sort	Tone, Kaoru
title	Modeling Investments in the Dynamic Network Performance of Insurance Companies
title_short	Modeling Investments in the Dynamic Network Performance of Insurance Companies
title_full	Modeling Investments in the Dynamic Network Performance of Insurance Companies
title_fullStr	Modeling Investments in the Dynamic Network Performance of Insurance Companies
title_full_unstemmed	Modeling Investments in the Dynamic Network Performance of Insurance Companies
title_sort	modeling investments in the dynamic network performance of insurance companies
publisher	Elsevier
publishDate	2019
url	http://umpir.ump.edu.my/id/eprint/23339/ http://umpir.ump.edu.my/id/eprint/23339/ http://umpir.ump.edu.my/id/eprint/23339/ http://umpir.ump.edu.my/id/eprint/23339/1/Modeling%20investments%20in%20the%20dynamic.pdf
first_indexed	2023-09-18T22:34:53Z
last_indexed	2023-09-18T22:34:53Z
_version_	1777416529279713280

Modeling Investments in the Dynamic Network Performance of Insurance Companies

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