Source of Funds and Islamic Insurance Growth: Investment Returns as a Mediation
DOI:
https://doi.org/10.26740/al-uqud.v4n1.p104-114Keywords:
Sharia Life Insurance, Source of funds, Intervening Variable, Company Growth, Path AnalysisAbstract
Sustainable growth must be maintained by maintaining an increase in investment returns, with the source of funds as a stimulant. The population of this study was all Islamic life insurance companies in Indonesia. The study used path analysis mediation with regression or two layers OLS (Ordinary Least Squares) and followed by Sobel test. The result showed that investment returns can mediate participant funds in influencing the growth of Islamic life insurance companies. Meanwhile, investment returns did not mediate the influence of company funds in influencing the growth of Islamic life insurance companies.
References
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Sabah, Nasim., and Hassan, M. K. (2019). Pricing of Islamic deposit insurance. Economics Letters. https://doi.org/doi.org/10.1016/j.econlet.2019.01.013
Tone, K., Kweh, Q. L., Lu, W.-M., and Ting, I. W. K. (2018). Modeling Investments in the Dynamic Network Performance of Insurance Companies. Omega. https://doi.org/doi.org/10.1016/j.omega.2018.09.005
Yusof, M.F., Ismail, W.Z., and Naaim, A. K. (2011). Fundamentals of Takaful. Kuala Lumpur: IBFIM.
Almajali, A.Y., Alamro, S.A., and Al-Soub, Y. . (2012). Factors Affecting the Financial Performance of Jordanian Insurance Companies Listed at Amman Stock Exchange. Journal of Management Research, 4(2). https://doi.org/doi.org/10.5296/jmr.v4i2.1482
Alshammari, AA., bin Syed Jaafar Alhabshi SM, and Saiti, B. (2018). The impact of competition on cost efï¬ciency of insurance and takaful sectors: evidence from GCC markets based on the Stochastic Frontier Analysis. Research in International Business and Finance. https://doi.org/doi.org/10.1016/j.ribaf.2018.09.003
Baron, R. M., and Kenny, D. A. (1986). No Title. The Moderator-Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic and Statistical Considerations, 11731182. https://doi.org/doi.org/10.1037/0022-3514.51.6.1173
Bolin, J. H. (2014). Introduction to Mediation, Moderation, and Conditional Process Analysis: A Regression-Based Approach. Journal of Educational Measurement. https://doi.org/doi:10.1111/jedm.12050
Frazier, P. A., Tix, A. P., and Barron, K. E. (2004). Testing moderator and mediator effects in counseling psychology research. Journal of Counseling Psychology, 115134. https://doi.org/doi.org/10.1037/0022-0167.51.1.115
Frenz, T., and Y. S. (2010). Takaful and Retakaful: Principles and Practices. Munich Re Retakaful. ISBN : 9789834377793
Hanif, M and Iqbal, A. (2014). An Evaluation of Takaful Insurance: Case of Pakistan. Journal of Islamic Economics, Banking and Finance, 13(1). https://doi.org/dx.doi.org/10.2139/ssrn.2386497
Hassan, L.F.A., Jusoh, W.J., and Hamid, Z. (2014). Determinant of Customer Loyalty in Malaysian Takaful Industry. Procedia - Social and Behavioral Sciences, 130, 362370. https://doi.org/doi.org/10.1016/j.sbspro.2014.04.043.
James, L. R., and Brett, J. M. (1984). Mediators, moderators and tests for mediation. Journal of Applied Psychology, 307321. https://doi.org/doi.org/10.1037/0021-9010.69.2.307
Judd, C. M., and Kenny, D. A. (1981). Process analysis: Estimating mediation in treatment evaluations. Evaluation Review, 602619. https://doi.org/doi.org/10.1177/0193841X8100500502
Khan, H. (2014). Optimal Incentives for Takaful (Islamic Insurance) Operators. Journal of Economic Behavior and Organization. https://doi.org/. dx.doi.org/10.1016/j.jebo.2014.11.001
Mao, H., Carson, J.M., Ostaszewski, K.M., Wen, Z. (2013). Optimal decision on dynamic insurance price and investment portfolio of an insurer. Insurance: Mathematics and Economics. https://doi.org/doi:10.1016/j.insmatheco.2013.01.007
Muthmainah, M. (2016). The Growth of Sharia Insurance in Indonesia 2015 2016: an Academic Forecast Analysis. Shirkah: Journal of Economics and Business,. https://doi.org/doi.org/10.22515/shirkah.v1i1.2
Muye, I.M., and H. A. F. (2015). Does Islamic Insurance Development Promote Economic Growth? A Panel Data Analysis. Procedia Economics and Finance. https://doi.org/doi: 10.1016/S2212-5671(16)00045-9
Najjar, Naser, and Petrov, K. (2011). Capital Structure of Insurance Companies in Bahrain. International Journal of Business and Management, 6(11). https://doi.org/doi:10.5539/ijbm.v6n11p138
Nasution, Z., Adiba, E.M., and Abdulrahim, M. O. (2019). Comparison analysis of risk-based capital (RBC) performance and its effect on islamic insurance profitability in indonesia and malaysia. Al-Uqud: Journal of Islamic Economics. https://doi.org/doi: 10.26740/al-uqud.v3n2.p149-160
Nektarios, M. (2010). A Growth Theory For The Insurance Industry. Risk Management and Insurance Review,. https://doi.org/doi.10.1111/j.1540-6296.2009.01172.x
Nurbaya, S., and Alam, A. (2019). Analysis of Factors Affecting Islamic Insurance Profitability (Case Study Of Sinar Mas Islamic Insurance Period 2011-2017). Journal of Islamic Economic Laws. https://doi.org/https://doi.org/10.23917/jisel.v2i2.8595
Preacher, K. J., and Hayes, A. F. (2004). SPSS and SAS procedures for estimating indirect effects in simple mediation models. Behavior Research Methods, Instruments, and Computers. https://doi.org/doi.org/10.3758/BF03206553
Preacher, K. J., and Hayes, A. F. (2008). Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behavior Research Methods. https://doi.org/doi.org/10.3758/BRM.40.3.879
Puspitasari, N. (2015). Hybrid Contract And Funds Efficiency Management Of Islamic General Insurance Company (Study In Indonesia). Procedia - Social and Behavioral Sciences. https://doi.org/doi: 10.1016/j.sbspro.2015.11.033
Sabah, Nasim., and Hassan, M. K. (2019). Pricing of Islamic deposit insurance. Economics Letters. https://doi.org/doi.org/10.1016/j.econlet.2019.01.013
Tone, K., Kweh, Q. L., Lu, W.-M., and Ting, I. W. K. (2018). Modeling Investments in the Dynamic Network Performance of Insurance Companies. Omega. https://doi.org/doi.org/10.1016/j.omega.2018.09.005
Yusof, M.F., Ismail, W.Z., and Naaim, A. K. (2011). Fundamentals of Takaful. Kuala Lumpur: IBFIM.
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2020-01-13
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Rahmanto, D. N. A., Fasa, M. I., & Rijal, K. (2020). Source of Funds and Islamic Insurance Growth: Investment Returns as a Mediation. Al-Uqud : Journal of Islamic Economics, 4(1), 104–114. https://doi.org/10.26740/al-uqud.v4n1.p104-114
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