Towards Factors on the Sustainable Growth of Insurance and Life Insurance Companies from the Stock Exchange of Thailand
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Abstract
The purpose of this research is to study the long-run relationship of the factors with influence on the sustainable growth of insurance and life insurance companies listed on the Stock Exchange of Thailand. The data used in the study is panel data collected from the past five years during 2016 - 2020 from financial reports and the form 56-1 on the website of the Stock Exchange of Thailand. To answer the research hypothesis, we sample 16 specific insurance and life insurance companies with fully details and complete financial information, consisting of analytical and 80 financial statements. We evaluate our study using the unit root test and the long-run relationship by means of Levin, Lin & Chu (LLC). The test has stationarity at the level I(0), and the studied parameters indicate the long-run relationship. The study results show that Return on Equity influences the sustainable growth rate of the business in the same direction. On the other hand, total Asset Turnover Earnings per share and the market price to book value per share ratio influence the sustainable growth rate of an entity in the opposite direction. The test results for the long-run relationship of the variables reveal that the independent variable in the equation describes the sustainable growth rate of 94.93%.
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