Factors influence financial performance of the Takaful industry in Malaysia

Takaful is an Islamic insurance based on Sharia compliance. Takaful industry is an industry that contributes to the development of Malaysia. Thus the stability of the financial performance of the takaful industry is very important. This study is carried out due to the unstable financial performance...

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Main Author:	Masnurah, Zain
Format:	Thesis
Language:	eng eng
Published:	2017
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/6604/1/s819508_01.pdf https://etd.uum.edu.my/6604/2/s819508_02.pdf
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id	my-uum-etd.6604
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Zainol Ariffin, Zaimah
topic	HG Finance
spellingShingle	HG Finance Masnurah, Zain Factors influence financial performance of the Takaful industry in Malaysia
description	Takaful is an Islamic insurance based on Sharia compliance. Takaful industry is an industry that contributes to the development of Malaysia. Thus the stability of the financial performance of the takaful industry is very important. This study is carried out due to the unstable financial performance of the takaful industry in Malaysia. The main objective of this study was to determine the relationship between leverage, size, equity capital and liquidity with the financial performance. This study is a quantitative research and data used are secondary data taken from the audited financial statement. This study is made up of all takaful operators in Malaysia for a period of five years from 2011 to 2015. When the study was conducted, a total of 11 takaful operators were registered with Bank Negara Malaysia (BNM). The financial performance is measured by Return on Assets (ROA). Leverage and liquidity was measured by ratio analysis whilst the size and equity capital was measured using a natural logarithm. To obtain the results of the study, the Statistical Package for the Social Sciences (SPSS) was used which consisted of descriptive statistics, normality test and multiple regressions analysis. The result of normality test was presented using histogram and p-p plot. The study found leverage and liquidity was not significant to the financial performance. Size have a significant and positive relationship with financial performance and equity capital have a significant but negative relationship with financial performance. The implications of this study can guide investors in making their investment decisions, customers in selecting favorable takaful policies and government in developing the takaful industry in Malaysia.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Masnurah, Zain
author_facet	Masnurah, Zain
author_sort	Masnurah, Zain
title	Factors influence financial performance of the Takaful industry in Malaysia
title_short	Factors influence financial performance of the Takaful industry in Malaysia
title_full	Factors influence financial performance of the Takaful industry in Malaysia
title_fullStr	Factors influence financial performance of the Takaful industry in Malaysia
title_full_unstemmed	Factors influence financial performance of the Takaful industry in Malaysia
title_sort	factors influence financial performance of the takaful industry in malaysia
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2017
url	https://etd.uum.edu.my/6604/1/s819508_01.pdf https://etd.uum.edu.my/6604/2/s819508_02.pdf
_version_	1747828102522732544
spelling	my-uum-etd.66042021-05-10T06:25:00Z Factors influence financial performance of the Takaful industry in Malaysia 2017 Masnurah, Zain Zainol Ariffin, Zaimah Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance Takaful is an Islamic insurance based on Sharia compliance. Takaful industry is an industry that contributes to the development of Malaysia. Thus the stability of the financial performance of the takaful industry is very important. This study is carried out due to the unstable financial performance of the takaful industry in Malaysia. The main objective of this study was to determine the relationship between leverage, size, equity capital and liquidity with the financial performance. This study is a quantitative research and data used are secondary data taken from the audited financial statement. This study is made up of all takaful operators in Malaysia for a period of five years from 2011 to 2015. When the study was conducted, a total of 11 takaful operators were registered with Bank Negara Malaysia (BNM). The financial performance is measured by Return on Assets (ROA). Leverage and liquidity was measured by ratio analysis whilst the size and equity capital was measured using a natural logarithm. To obtain the results of the study, the Statistical Package for the Social Sciences (SPSS) was used which consisted of descriptive statistics, normality test and multiple regressions analysis. The result of normality test was presented using histogram and p-p plot. The study found leverage and liquidity was not significant to the financial performance. Size have a significant and positive relationship with financial performance and equity capital have a significant but negative relationship with financial performance. The implications of this study can guide investors in making their investment decisions, customers in selecting favorable takaful policies and government in developing the takaful industry in Malaysia. 2017 Thesis https://etd.uum.edu.my/6604/ https://etd.uum.edu.my/6604/1/s819508_01.pdf text eng public https://etd.uum.edu.my/6604/2/s819508_02.pdf text eng public other masters Universiti Utara Malaysia Abduh, M., Omar, M. A., & Mohd Tarmizi, R., (2012). Measuring the Performance of Insurance Industry in Malaysia : Islamic vis-à-vis Conventional Insurance. Abdul Rahman, Z., & Redzuan, H., (2009). Takaful: The 21st Century Insurance Innovation. McGraw Hill, Malaysia. Abiy, Z. A. (2009). Introduction to Research. Retrieved from https://www.researchgate.net/profile/Anteneh_ Abiy Adams, M., & Buckle, M., (2003). The Determinants of Corporate Financial Performance in The Bermuda Insurance Market. Applied Financial Economics, 13, 133-143. Adams, M., & Buckle, M., (2000). 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Factors influence financial performance of the Takaful industry in Malaysia

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