BUSINESS

RESEARCH
METHOD
FACTORS AFFECTING FIRM
EFFICIENCY
IN LIFE INSURANCE COMPANIES
 • Insurance sector in Bangladesh emerged after independence
with 2 nationalized insurance companies- 1 Life & 1
LIFE INSURANCE General; and 1 foreign insurance company.
COMPANY LTD • In mid 80s, private sector insurance companies started to
IN BANGLADESH enter in the industry and it got expanded.
• Now days, 62 companies are operating under Insurance Act
2010.
 TEN
COMPANIES
 National Life Insurance Co.Ltd.
 Pragati Life Insurance Limited
 Sonali Life Insurance Limited
 Delta Life Insurance Company Ltd.
 Rupali Life Insurance Company Ltd.
 Prime Islami Life Insurance Company
Ltd.
 Meghna Life Insurance Company Ltd.
 Farest Life Insurance Company Ltd.
 Sondhani Life Insurance Company Ltd.

TIME PERIOD 7
YEARS
 Dependent Variable

Profitability

VARIABLE
S Productivity Liquidity
FOR Firm
STUDY Efficiency

Working
Independent Variables Leverage
Capital
 Variable Variable Name Formula

    Asset turnover ratio= Net Sales / Average Total Assets

Dependent Variable Firm Efficiency
 

   Profitability  Return on Equity= Net Income / Equity

   
   

FORMU  
 Liquidity Current ratio= Current Asset / Current liability

LA Independent Variables
 
 

 Productivity Fixed Asset Turnover= Sales / Fixed Asset

 
 
 
 

 Working Capital  Current Asset- Current Liability

 Leverage  Total Debt Ratio= Total Liabilities / Total Asset

DESCRIPTIVE ANALYSIS
 RESEARCH APPROACH
Data
Structure of Researcher’s Study Scope of Research
Collection Period
Research Influence Topic Environment
Purpose
Method
Question Study Depth

Ex-Post Statistical Statistical

Formal Monitoring Casual 7 years
Facto History Study
REGRESSION ANALYSIS

Regression Equation:
Y = α + β1X1+ β2X2 + β3X3 + β4X4 + β5X5 + ε
Error Term
Productivity
Profitability
Constant Leverage Liquidity Working Capital
 REGRESSION
ANALYSIS
 Firm’s Efficiency= -1.83E.08 –
0.006157
 Leverage – 4.28E+08
 Liquidity =0.015063 *
 Productivity =-0.001457
 Profitability =0.073036
 Working Capital = -1.83E-08
Hypothesis Testing Analysis