The relationship of internal determinants towards financial profitability: an analysis of insurance companies in Malaysia / Saidah Mohd Ali

This paper investigates the relationship between internal determinants (size of company, liquidity, leverage, volume of capital, firm growth and managerial efficiency) and financial profitability of insurance companies in Malaysia. The sample of this study includes seven insurance companies that are listed in Bursa Malaysia for the year 2009 to 2016. The data was obtained from secondary data which is from the financial statement and balance sheet for each insurance companies. This research was examined through a panel data analysis. The result shows that leverage, volume of capital, tangibility of assets, firm growth and managerial efficiency has a positive relationship to profitability. In contrast, the result found that size of company and liquidity has a negative relationship towards the profitability of insurance companies in Malaysia. In this study, the measurement of profitability of insurance companies in Malaysia is using return on assets (ROA).