The Effect Of Early Warning System (EWS) And  Risk Based Capital (RBC) On Value Of  Insurance Companies Listed On IDX

Muhammad  Zaelani Maulana Akbar; Lukman Effendy; Robith Hudaya

doi:10.98765/apjbet.v3i02.139

Muhammad Zaelani Maulana Akbar Accounting Study Program, Faculty of Economics and Business, University of Mataram, Indonesia
Lukman Effendy Accounting Study Program, Faculty of Economics and Business, University of Mataram, Indonesia
Robith Hudaya Accounting Study Program, Faculty of Economics and Business, University of Mataram, Indonesia

DOI: https://doi.org/10.98765/apjbet.v3i02.139

Keywords: Insurance, Early Warning System, Risk Based Capital, Company Values

Abstract

The purpose of this research is to analyze and examine the influence of early warning system and risk-based capital on company values in the sector of insurance listed on the Indonesia Stock Exchange period 2017—2021. This research is a modification of previous researches which is to combine the variables of the previous researchers between Early Warning System (EWS) measurement proxied by the ratios of claim expense, liquidity, agent’s balance to surplus, premium growth; and Risk-Based Capital (RBC) method. The purpose is to find out the value in insurance companies proxied by Price Earning Ratio (PER). Data used in this research is secondary data including financial statements of insurance companies. Sampling technique used is purposive sampling. Total sample in this research is 15 insurance companies listed on IDX. Data analysis method used is panel data regression analysis. The results of the research show that claim expense ratio does not have a significance effect on company values, neither do liquidity, agent’s balance to surplus, and premium growth ratios. However, risk-based capital ratio has a significant effect on company values.