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Year 2015, Volume: 36 Issue: 3, 2807 - 2817, 13.05.2015

Abstract

References

  • Ahangari, M, 25th and 26th of Persian date Azar, 1390. "Applying decision tree algorithms to predict bankrupt and non-bankrupt companies listed in Tehran Stock Exchange." The first national conference of Computer & Information Technology students, University of Tabriz
  • Eskandari F & Rostami, M., Fallah Shams and M., 2011. " helplessness Assessment of companies listed in the Tehran Stock Exchange: A comparative study between the Data Envelopment Analysis and logistic regression." Journal of Management in Iran.
  • Hajieh, Z, 2005. "The collapse of the company, its causes and stages, study of the bankruptcy legal systems in Iran and the world" .Hesabras Journal.
  • Soleimani, G., 2003. "The theories of the bankruptcy in the company, and proposal of a new theory" Journal of a human and social sciences.
  • Soleimani Amiri, Gh., 2003. "Financial ratios and prediction of financial crisis of companies in Tehran Stock Exchange" financial investigations.
  • Soleimani, G., 2010. "Performance Evaluation of prediction financial crisis patterns for Iranian companies". Accounting knowledge.
  • Seyyed Hosseini, SM. and Karami, GH, Fall 2012. "The usefulness of accounting information to the market information in anticipation of bankruptcy" .Journal of accounting knowledge, No. 10.
  • Safarzadeh, MH.and Arab Mazar Yazdi, M, 2010. "The ability of financial ratios to predict financial crisis: Logit analysis". Quarterly of Stock Exchange.
  • Farajzadeh Dehkordi, H. and Etemadi, H., 2008. "A review of bankruptcy prediction models". Journal of Accounting 200.
  • Ahangari, M. (2011). "Using decision tree algorithm to predict bankruptcy and nonbankruptcy companies listed in Tehran Stock Exchange." The first national conference of scholars Computer & Information Technology, University of Tabriz. (In Persian)
  • Adnan, Aziz. & Humayon , A. (2006). “Prediction corporation banckrupcy: where we stand?corporate governance.”INFORM GLOBAL ,PP. 18.
  • Aiyabei, J.(2000)..”Financial distress:theory,measurement & consequence” Paper presented at the catholic university of eastern Africa.
  • Altman, E.I.(2000).”Prediction financial distress of companies:revisiting the z-score & zeta models”. New York University,Vol 5,No.8,PP.1-54.
  • Altman, Edward I. (1968).”Financial ratio, discriminant analysis & the prediction corporation banckrupcy”. Journal of Financial, Vol.23,PP.589-607.
  • Altman, E.I. & Eisenbeis, R. (1978)” Financial application of discriminant analysis,A clarication”.Journal of Financial & Quantitative Analysis.
  • Altman E.I & Haldeman, R.G. & Narayanan, P. (1977).”Zeta analysis, a new model to identify bankruptcy risk of corporation”, Journal of Banking & Finance,Vol.1,PP.29-54.
  • Arjana, Brezigar. & Masten, Igore. (2012);”CART-based selection of bankruptcy predictors for the logit model;expert systems with application.” Journal of Management Studies ,Vol.39,No.10.PP.1153-10159.
  • Aziz, a. & Emanuel, D.C. & Lawson, G.H. (1988).”Bankruptcy prediction-an investigation of cash flow based models”.Journal of Management Studies,Vol.25,No.5,PP.419-37.
  • Beaver, William H. (1966).”Alternative accounting measure as prediction of failure amrican accounting association manuscript contest for 1967”Journal of Insurance & Risk,113-121.
  • Beynon, M.J. & Peel, M.J. (2001).”Variable pricsion rough set theory & data discretization: an application to corporate failure prediction”.Journal of Omega ,Vol.29,PP.5
  • Bioch, J.C. & Popova, V. (2001). ”Bankruptcy prediction with rough sets, ERIM report series research in management” (ERS 2001)
  • Booth, P.J. (1983).”Decomposition measure and the prediction of financial failure”.Journal of Business Financial & Accounting,Vol. 10,No.1,PP,67-82.
  • Bryant, S.M. (1997). ”A case-based reasoning approach to bankruptcy prediction modeling.”Intelligent Systems in Accounting, Finance & Managmente, No.6,PP.195-214.
  • Classens, S. & Djankov, S. & klapper, leora. (2000). ”Sesolution of corporate distress in east asia,world bank” ,Working Paper.
  • Deakin, E.B. (1972).”A discriminant analysis of prediction of business failure.” Journal of Accounting Research,Vol.10,No.1,PP.167-179.
  • Diaz, zuleyka. & Jesus Segovia, Maria. & Fernandez, Jose. (2005).”Machin learning statistical techniques,an aplllication to the prediction of insolvency in Spanish non-life insurance companies”.Journal of Digital Accounting Research ,Vol.5,No.9,PP.1-45.
  • Eskandari, Farzaneh. and Rostami, M. and Falah, Shams. (2011). "Assessment of helplessness companies listed in Tehran Stock Exchange: A comparative study between the DEA and logistic regression". Journal of Management in Iran. (In Persian)
  • Farajzadeh dehkordi, H. and Etemadi, H. (2009). "A review of bankruptcy prediction models". Journal of Accounting No.200. (In Persian)
  • Fazzolari, Diane. (2009)”Insurance company solvency current monitoring measures & proposal for change”,Journale of London.
  • Freund, Y. & Schapire, R.E. (1997).”A decition-theoretic generalization of on-line learning & an application to boosting,joural of comuter & system sciences.”Journal of Risk and Insurance,Vol.55.No.1,PP.119-139
  • Haji, Z. (2006). "The Fall of the company, and the reasons for the failure of the legal system in the world." Auditor magazine. (In Persian)
  • Soleimani, G.H. (2004). "The theory of the bankruptcy of the company and design a new theory". Journal of Humanities and Social Sciences. (In Persian)
  • Soleimani, G.H. (2004). "Financial ratios and predict financial crisis in Tehran Stock Exchange" financial investigations. (In Persian)
  • Soleimani, G.H. (2011). "Assessment of performance prediction models for Iranian financial crisis". Accounting knowledge. (In Persian)
  • Seyed Hosseini, S.M. and Karami, G.H. (2013). "The usefulness of accounting information to the market information in predicting bankruptcy". Journal of Accounting, No. 10. (In Persian)
  • Safarzadeh, M. and Arab Mazar Yazdi, M. (2011). "The study compared the financial ability to predict financial crisis: Logit analysis". Securities and Exchange magazine. (In Persian)

Relationship between Solvency and Financial Ratios in Iranian Insurance Institutions

Year 2015, Volume: 36 Issue: 3, 2807 - 2817, 13.05.2015

Abstract

Abstract. Obviously a major concern for regulatory bodies and for insurers in today's insurance industry is to make sure that all obligations of the insurance company are duly met. An existence of a solvency system influenced by all risks that an insurer is faced with seems necessary as an effective tool for insurance regulation. The main objective of this study is to investigate any relationship between solvency system and those financial ratios representing all risks that an insurer is exposed to. The present article attempts to answer the question that whether the system of solvency adopted in Regulation No. 69 is sensitive to the risks or not. In case of no relationship, a serious shortcoming in the model is induced. For statistical analysis, a time period of 1389 to 1391 including a sample of 22 insurance companies is considered. The research methodology consists of a multiple regression analysis using panel data. The results indicate that there is a significant relationship between the solvency ratio and the selected financial ratios including current ratio, equity ratio, reserves ratio and loss ratio among which equity ratio has the highest meaningful correlation with the solvency ratio.

References

  • Ahangari, M, 25th and 26th of Persian date Azar, 1390. "Applying decision tree algorithms to predict bankrupt and non-bankrupt companies listed in Tehran Stock Exchange." The first national conference of Computer & Information Technology students, University of Tabriz
  • Eskandari F & Rostami, M., Fallah Shams and M., 2011. " helplessness Assessment of companies listed in the Tehran Stock Exchange: A comparative study between the Data Envelopment Analysis and logistic regression." Journal of Management in Iran.
  • Hajieh, Z, 2005. "The collapse of the company, its causes and stages, study of the bankruptcy legal systems in Iran and the world" .Hesabras Journal.
  • Soleimani, G., 2003. "The theories of the bankruptcy in the company, and proposal of a new theory" Journal of a human and social sciences.
  • Soleimani Amiri, Gh., 2003. "Financial ratios and prediction of financial crisis of companies in Tehran Stock Exchange" financial investigations.
  • Soleimani, G., 2010. "Performance Evaluation of prediction financial crisis patterns for Iranian companies". Accounting knowledge.
  • Seyyed Hosseini, SM. and Karami, GH, Fall 2012. "The usefulness of accounting information to the market information in anticipation of bankruptcy" .Journal of accounting knowledge, No. 10.
  • Safarzadeh, MH.and Arab Mazar Yazdi, M, 2010. "The ability of financial ratios to predict financial crisis: Logit analysis". Quarterly of Stock Exchange.
  • Farajzadeh Dehkordi, H. and Etemadi, H., 2008. "A review of bankruptcy prediction models". Journal of Accounting 200.
  • Ahangari, M. (2011). "Using decision tree algorithm to predict bankruptcy and nonbankruptcy companies listed in Tehran Stock Exchange." The first national conference of scholars Computer & Information Technology, University of Tabriz. (In Persian)
  • Adnan, Aziz. & Humayon , A. (2006). “Prediction corporation banckrupcy: where we stand?corporate governance.”INFORM GLOBAL ,PP. 18.
  • Aiyabei, J.(2000)..”Financial distress:theory,measurement & consequence” Paper presented at the catholic university of eastern Africa.
  • Altman, E.I.(2000).”Prediction financial distress of companies:revisiting the z-score & zeta models”. New York University,Vol 5,No.8,PP.1-54.
  • Altman, Edward I. (1968).”Financial ratio, discriminant analysis & the prediction corporation banckrupcy”. Journal of Financial, Vol.23,PP.589-607.
  • Altman, E.I. & Eisenbeis, R. (1978)” Financial application of discriminant analysis,A clarication”.Journal of Financial & Quantitative Analysis.
  • Altman E.I & Haldeman, R.G. & Narayanan, P. (1977).”Zeta analysis, a new model to identify bankruptcy risk of corporation”, Journal of Banking & Finance,Vol.1,PP.29-54.
  • Arjana, Brezigar. & Masten, Igore. (2012);”CART-based selection of bankruptcy predictors for the logit model;expert systems with application.” Journal of Management Studies ,Vol.39,No.10.PP.1153-10159.
  • Aziz, a. & Emanuel, D.C. & Lawson, G.H. (1988).”Bankruptcy prediction-an investigation of cash flow based models”.Journal of Management Studies,Vol.25,No.5,PP.419-37.
  • Beaver, William H. (1966).”Alternative accounting measure as prediction of failure amrican accounting association manuscript contest for 1967”Journal of Insurance & Risk,113-121.
  • Beynon, M.J. & Peel, M.J. (2001).”Variable pricsion rough set theory & data discretization: an application to corporate failure prediction”.Journal of Omega ,Vol.29,PP.5
  • Bioch, J.C. & Popova, V. (2001). ”Bankruptcy prediction with rough sets, ERIM report series research in management” (ERS 2001)
  • Booth, P.J. (1983).”Decomposition measure and the prediction of financial failure”.Journal of Business Financial & Accounting,Vol. 10,No.1,PP,67-82.
  • Bryant, S.M. (1997). ”A case-based reasoning approach to bankruptcy prediction modeling.”Intelligent Systems in Accounting, Finance & Managmente, No.6,PP.195-214.
  • Classens, S. & Djankov, S. & klapper, leora. (2000). ”Sesolution of corporate distress in east asia,world bank” ,Working Paper.
  • Deakin, E.B. (1972).”A discriminant analysis of prediction of business failure.” Journal of Accounting Research,Vol.10,No.1,PP.167-179.
  • Diaz, zuleyka. & Jesus Segovia, Maria. & Fernandez, Jose. (2005).”Machin learning statistical techniques,an aplllication to the prediction of insolvency in Spanish non-life insurance companies”.Journal of Digital Accounting Research ,Vol.5,No.9,PP.1-45.
  • Eskandari, Farzaneh. and Rostami, M. and Falah, Shams. (2011). "Assessment of helplessness companies listed in Tehran Stock Exchange: A comparative study between the DEA and logistic regression". Journal of Management in Iran. (In Persian)
  • Farajzadeh dehkordi, H. and Etemadi, H. (2009). "A review of bankruptcy prediction models". Journal of Accounting No.200. (In Persian)
  • Fazzolari, Diane. (2009)”Insurance company solvency current monitoring measures & proposal for change”,Journale of London.
  • Freund, Y. & Schapire, R.E. (1997).”A decition-theoretic generalization of on-line learning & an application to boosting,joural of comuter & system sciences.”Journal of Risk and Insurance,Vol.55.No.1,PP.119-139
  • Haji, Z. (2006). "The Fall of the company, and the reasons for the failure of the legal system in the world." Auditor magazine. (In Persian)
  • Soleimani, G.H. (2004). "The theory of the bankruptcy of the company and design a new theory". Journal of Humanities and Social Sciences. (In Persian)
  • Soleimani, G.H. (2004). "Financial ratios and predict financial crisis in Tehran Stock Exchange" financial investigations. (In Persian)
  • Soleimani, G.H. (2011). "Assessment of performance prediction models for Iranian financial crisis". Accounting knowledge. (In Persian)
  • Seyed Hosseini, S.M. and Karami, G.H. (2013). "The usefulness of accounting information to the market information in predicting bankruptcy". Journal of Accounting, No. 10. (In Persian)
  • Safarzadeh, M. and Arab Mazar Yazdi, M. (2011). "The study compared the financial ability to predict financial crisis: Logit analysis". Securities and Exchange magazine. (In Persian)
There are 36 citations in total.

Details

Journal Section Special
Authors

A. Safari

N. Sarlak This is me

R. Nasiri This is me

Publication Date May 13, 2015
Published in Issue Year 2015 Volume: 36 Issue: 3

Cite

APA Safari, A., Sarlak, N., & Nasiri, R. (2015). Relationship between Solvency and Financial Ratios in Iranian Insurance Institutions. Cumhuriyet Üniversitesi Fen Edebiyat Fakültesi Fen Bilimleri Dergisi, 36(3), 2807-2817.
AMA Safari A, Sarlak N, Nasiri R. Relationship between Solvency and Financial Ratios in Iranian Insurance Institutions. Cumhuriyet Üniversitesi Fen Edebiyat Fakültesi Fen Bilimleri Dergisi. May 2015;36(3):2807-2817.
Chicago Safari, A., N. Sarlak, and R. Nasiri. “Relationship Between Solvency and Financial Ratios in Iranian Insurance Institutions”. Cumhuriyet Üniversitesi Fen Edebiyat Fakültesi Fen Bilimleri Dergisi 36, no. 3 (May 2015): 2807-17.
EndNote Safari A, Sarlak N, Nasiri R (May 1, 2015) Relationship between Solvency and Financial Ratios in Iranian Insurance Institutions. Cumhuriyet Üniversitesi Fen Edebiyat Fakültesi Fen Bilimleri Dergisi 36 3 2807–2817.
IEEE A. Safari, N. Sarlak, and R. Nasiri, “Relationship between Solvency and Financial Ratios in Iranian Insurance Institutions”, Cumhuriyet Üniversitesi Fen Edebiyat Fakültesi Fen Bilimleri Dergisi, vol. 36, no. 3, pp. 2807–2817, 2015.
ISNAD Safari, A. et al. “Relationship Between Solvency and Financial Ratios in Iranian Insurance Institutions”. Cumhuriyet Üniversitesi Fen Edebiyat Fakültesi Fen Bilimleri Dergisi 36/3 (May 2015), 2807-2817.
JAMA Safari A, Sarlak N, Nasiri R. Relationship between Solvency and Financial Ratios in Iranian Insurance Institutions. Cumhuriyet Üniversitesi Fen Edebiyat Fakültesi Fen Bilimleri Dergisi. 2015;36:2807–2817.
MLA Safari, A. et al. “Relationship Between Solvency and Financial Ratios in Iranian Insurance Institutions”. Cumhuriyet Üniversitesi Fen Edebiyat Fakültesi Fen Bilimleri Dergisi, vol. 36, no. 3, 2015, pp. 2807-1.
Vancouver Safari A, Sarlak N, Nasiri R. Relationship between Solvency and Financial Ratios in Iranian Insurance Institutions. Cumhuriyet Üniversitesi Fen Edebiyat Fakültesi Fen Bilimleri Dergisi. 2015;36(3):2807-1.