THE EFFECTS OF CREDIT RISK, OPERATIONAL RISK AND LIQUIDITY RISK ON THE FINANCIAL PERFORMANCE OF INSURANCE COMPANIES LISTED AT KUWAIT STOCK EXCHANGE

Sundus K. Al-Yatama, Musaed S. Al Ali, Khuloud M. Al Awadhi, Nour M. Al Shamali

Abstract


This aim of this study to shed some light of the effect of risk factors on the financial performance of insurance companies listed at Kuwait stock exchange (KSE) over the period 2009-2017. The research uses credit, operational and liquidity risk as independent variables and return on assets (ROA) and return on equity (ROE) as dependent variables. Results obtained from this study showed that the financial performance of Kuwaiti insurance companies are mostly affected by operational risk and credit risk while liquidity risk does not have any statistical significant effect on their financial performance.

 

JEL: L10; L25; G32; G22

 

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insurance companies, Kuwait stock exchange, operational risk, credit risk, liquidity risk, return on assets, return on equity, financial performance

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