Intellectual Capital Efficiency and Risk-Taking Behaviour of Insurance Companies in Ghana
Date
2023
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of African Business
Abstract
Our study focused on the link between intellectual capital efficiency
(ICE) and its individual components and underwriting risk. It exam ined the effect of ICE, and structural (SCE) and human capital (HCE)
efficiency on the underwriting risk of Ghanaian life and non-life
insurers. It used panel data of 31 insurance firms in Ghana, of which
14 and 17 were life and non-life insurers, respectively, from 2008 to
2019. A generalized least squares estimation technique was used to
examine the relationship between ICE and underwriting risk in life,
non-life, and the entire insurance sector. The results suggest that
there is a significant negative relationship between HCE and under writing risk in the Ghanaian insurance sector. However, there was
no relationship between ICE and underwriting risk and between
SCE and underwriting risk. As the first to examine ICE and risk taking behavior in any African country, our study is significant in
managerial decision-making and insurance policy formulation to
reduce risk in the insurance industry.
Description
Research Article
Keywords
Intellectual capital, underwriting risk, human capital efficiency
Citation
To cite this article: Saint Kuttu, Lord Mensah & Daniel Attah-Kyei (2023): Intellectual Capital Efficiency and Risk-Taking Behaviour of Insurance Companies in Ghana, Journal of African Business, DOI: 10.1080/15228916.2023.2230396