<p>This study investigates the impact of political instability on the profitability of insurance companies in Ethiopia. Using a quantitative approach and secondary data from eight firms (2018–2022), the research employs a fixed effects model for panel data analysis. Results reveal that political instability, firm size, and asset tangibility significantly enhance profitability, while firm age and growth rate show no significant relationship. The findings suggest that policymakers should focus on these critical factors to improve insurance sector performance, highlighting the importance of stability and firm characteristics in influencing financial outcomes in the industry.</p>

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The Impact of Political Instability on Insurance Companies’ Profitability: Evidenced from Ethiopia

  • Meheret Beyene Engeda,
  • Ahmed Mohammed Yimer

摘要

This study investigates the impact of political instability on the profitability of insurance companies in Ethiopia. Using a quantitative approach and secondary data from eight firms (2018–2022), the research employs a fixed effects model for panel data analysis. Results reveal that political instability, firm size, and asset tangibility significantly enhance profitability, while firm age and growth rate show no significant relationship. The findings suggest that policymakers should focus on these critical factors to improve insurance sector performance, highlighting the importance of stability and firm characteristics in influencing financial outcomes in the industry.