International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Effect of the Micro and Macro Factors on the Performance of the Listed Jordanian Insurance Companies
Dr. Mohammad W. Alomari, Dr. Islam A. Azzam

One of the key performance indicators and a major concern for any type of organization in any industry is profitability; this paper seeks to investigate the effects of a firm’s micro and macroeconomic factors on performance of Jordanian insurance companies measured by return on assets (ROA) which is considered as proxy of profitability. The study utilizes a panel data of 24 listed insurance companies during the time period of 2008-2014. Finding include that liquidity, leverage and under writing risks have a negative and a significant effect whereas size of the company, market share and GDP have statically a positive and a significant effect on the profitability of the Jordanian insurance industry. Findings also include that inflation has no significant effect on the profitability of the insurance industry in Jordan.

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