Performance Evaluation of Motor Insurance Companies: Panel Data Evidence from Nigeria

This paper evaluated performance of motor insurance companies in Nigeria. The objectives were to determine the following: 1) significant effects of claims settlements on motor insurance firms’ earned premium;2) differences in managerial/technological capabilities among the companies and 3) effects of policy (or time effect) on insurance firms’ output within the study period. Panel data obtained for this study comprised operational data on premium earned and direct claims settlement by these companies over a period of six (6) years. Using panel data statistical models, we found that direct claims settlement negatively affected insurance companies’ earned premium. Also, significant differences in technological and managerial capabilities were found to exist among the companies, though only one company exhibited this heterogeneity. Besides, there were no policy impacts (or time effect) on vehicle insurance firms’ output in the study period. Policy implications of the results were discussed.

The role of trust in supervisor in participative budgeting systems

This study examined the relationship between budget participation and managerial performance as mediated by trust in supervisor and explored the moderating role of budget-goal difficulty on budget participation, trust in supervisor, and managerial performance. One-hundred-fifty-eight useful responses were drawn at random from subordinate managers of manufacturing companies listed on the Taiwan Stock Exchange. The mediating effect of trust in supervisor was examined by path analysis. Subgroup analysis was used to examine the contingency effect of budget-goal difficulty on the mediating role of trust in supervisor between budget participation and performance. The findings support our hypotheses and demonstrate the mediating effect of trust in supervisor and the moderating effect of budget-goal difficulty.