The Role of Asset Liability Management (ALM) in the Insurance Industry in Improving the Economic Consequences of Accounting Information Quality

Document Type : Original Article

Authors
mohamad owsati 1
ghodratallah talebnia 2
hamidreza vakilifard 2
1 Accounting, management and economyو Science and Research, tehran, iran
2 Accounting Department , Islamic Azad University Science and Research Branch, Tehran, Iran
Abstract
Asset and Liability Management seeks to find a combination of assets and liabilities in the balance sheet to thereby increase shareholders' net wealth.The role of Asset and Liability Management has been studied more in the financial and credit industries and in banks, but less in insurance companies.Therefore, this study seeks to examine the role of Asset, Liability Management, in the insurance industry in the economic consequences of accounting information quality.
The research is descriptive in terms of purpose and applied in results.In this study, we first extracted the information required from insurance companies from the financial statements and information available in the Stock Exchange for the period of 8 years from 2008 to 2015 and selected 27 companies from the total of insurance companies as statistical sample. So we used synthetic data to test the hypotheses.Then, based on Dickey Fuller test, the variables were tested, by Kolmogorov Smirnov test, normality of data and by Durbin Watson test, the independent of the errors.In this study, Fisher's statistic at 95% confidence level was used to test the overall significance of the processed regression model.The results show that some of the measures of “Asset- Liability Management” including liquidity ratios, premium reserves, and deferred reserves have impact on the “economic consequences of accounting information quality” but the ratio of fixed assets does not affect it.
Keywords
Asset and Liability Management
Economic consequences
Quality of accounting information
insurance industry
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Journal of Management Accounting and Auditing Knowledge
Volume 9, Issue 33
Spring 2020
Pages 223-238