Influence of Firm Size on Financial Performance of Insurance Firms in Nairobi City County - Kenya

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Date
2024-01-31
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International Journal of Academics & Research
Abstract
Technology, processes, and people are combined by businesses in such a way as to increase the value and productivity of business performances while minimizing routine costs. This results in efficient financial performance. The context of a company's qualities has big influences on the insurance industry's performances and growth. Because of the industry's strong performances’ and appeal to consumers, there is a great need for whenever the system is doing okay, a slowdown if the economy is having trouble. In order to increase financial stability throughout the nation and achieve sustained development, Kenya's insurance industry must perform effectively. Although some businesses have increased their effectiveness, the majority of insurance companies have demonstrated a decline in performance from 2017 to 2021. Due to this, this investigation seeks to ascertain the effect of firm size on the finance performances of insurance institutions in Nairobi County. An explanatory research design was employed. A purposive sample of 50 firms was utilized out of the 53 insurance firms. The Insurance Regulatory Authorities, the Associations of Kenyan Insurer, and financial report were used as secondary sources to collect data. Analysis made use of panel regression, descriptive analysis, and correlation analysis. A threshold of 0.05 was used for the hypothesis testing. This investigation adhered to all ethical standards. Findings of the investigation discovered that firm size significantly but positively determined insurance financial performance in Kenya where Nairobi City County is situated. Therefore, the inquiry suggests that the management of insurance firms should device means through which firms can be managed effectively to enhance the operations of insurance within the area of the study. This would attract both investors and clients to the field of insurance thus, boosting financial performance in Kenya.
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Citation
Wako, B. L., & Kimutai, C. (2024). Influence of Firm Size on Financial Performance of Insurance Firms in Nairobi City County—Kenya. International Journal of Academics & Research (IJARKE Business & Management Journal)), 6(2), 17–21.