Determinants of corporate demand for islamic insurance in Malaysia

Mohamad Abdul Hamid, Jamil Osman, Bany Ariffin Amin Nordin

    Research output: Contribution to journalArticle

    6 Citations (Scopus)

    Abstract

    This study is the first attempt to empirically investigate the determinants of corporate demand for Islamic insurance (takaful) using data from main board of public listed companies at Bursa Malaysia. Factors like leverage, growth opportunities, expected bankruptcy costs, company size, managerial ownership, tax considerations and regulated effects have been examined in this study. The data covers a five-year period from year 2002 - 2006. The findings show that leverage, expected bankruptcy costs, tax considerations, company size, and managerial ownership play an important role in determining the corporate demand for Islamic insurance in Malaysia. Our conclusions are robust to alternative specifications model of GLS with Fixed Effects that help us to control for unobservable heterogeneity.

    Original languageEnglish
    Pages (from-to)278-296
    Number of pages19
    JournalInternational Journal of Economics and Management
    Volume3
    Issue number2
    Publication statusPublished - Dec 2009

    Fingerprint

    Managerial ownership
    Bankruptcy costs
    Malaysia
    Insurance
    Tax
    Company size
    Leverage
    Factors
    Model specification
    Growth opportunities
    Listed companies
    Fixed effects

    Keywords

    • Corporate demand
    • Islamic insurance
    • Takaful

    ASJC Scopus subject areas

    • Economics, Econometrics and Finance(all)
    • Business and International Management
    • Strategy and Management

    Cite this

    Determinants of corporate demand for islamic insurance in Malaysia. / Hamid, Mohamad Abdul; Osman, Jamil; Nordin, Bany Ariffin Amin.

    In: International Journal of Economics and Management, Vol. 3, No. 2, 12.2009, p. 278-296.

    Research output: Contribution to journalArticle

    Hamid, Mohamad Abdul ; Osman, Jamil ; Nordin, Bany Ariffin Amin. / Determinants of corporate demand for islamic insurance in Malaysia. In: International Journal of Economics and Management. 2009 ; Vol. 3, No. 2. pp. 278-296.
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