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Corporate Governance Analysis on Risk Exposure and Performance of AIA Bhd

Author

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  • Annathurai, Anusha
Abstract
Analysis on corporate governance principles of AIA Bhd. is studied in this article along with their risk exposure and performance as per the concern of the research objective. The performance of the company is indicated by Return on Asset which act as the dependent variable of this study. Whereas, the risk exposure is indicated by internal and external factors of independent variables. Internal factors cover Liquidity Risk in terms of current ratio and quick ratio; Credit Risk in terms of average collection period and debt to income ratio; and Operational Risk in terms of operational ratio and operating margin. Meanwhile, external factor covers Market Risk in terms of Gross Domestic Product (GDP) rate, Inflation Rate, Interest Rate and Exchange Rate. The analysis of this study shows that the influence of these independent variables is significant towards the dependent variable. The analysis concluded that the most significant variable is Operating Margin.

Suggested Citation

  • Annathurai, Anusha, 2019. "Corporate Governance Analysis on Risk Exposure and Performance of AIA Bhd," MPRA Paper 97259, University Library of Munich, Germany, revised 27 Nov 2019.
    • Handle: RePEc:pra:mprapa:97259
    as

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    File URL: https://mpra.ub.uni-muenchen.de/97259/1/MPRA_paper_97259.pdf
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    References listed on IDEAS

    as
    1. Shleifer, Andrei & Vishny, Robert W, 1997. "A Survey of Corporate Governance," Journal of Finance, American Finance Association, vol. 52(2), pages 737-783, June.
    2. Morris, Stephen & Shin, Hyun Song, 2004. "Coordination risk and the price of debt," European Economic Review, Elsevier, vol. 48(1), pages 133-153, February.
    3. Altman, Edward I. & Saunders, Anthony, 1997. "Credit risk measurement: Developments over the last 20 years," Journal of Banking & Finance, Elsevier, vol. 21(11-12), pages 1721-1742, December.
    4. Mohd. Heikal & Muammar Khaddafi & Ainatul Ummah, 2014. "Influence Analysis of Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin (NPM), Debt To Equity Ratio (DER), and current ratio (CR), Against Corporate Profit Growth In Automotive In Indo," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(12), pages 101-114, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    AIA Bhd.; Corporate Governance; Performance; Risk; Insurance; Return on Asset; Liquidity Risk; Credit Risk; Operational Risk; Market Risk; Current Ratio; Quick Ratio; Average Collection Period; Debt to Income Ratio; Operational Risk; Operating Margin; Gross Domestic Product (GDP); Inflation Rate; Interest Rate; Exchange Rate AIA Bhd.; Corporate Governance; Performance; Risk; Insurance; Return on Asset; Liquidity Risk; Credit Risk; Operational Risk; Market Risk; Current Ratio; Quick Ratio; Average Collection Period; Debt to Income Ratio; Operational Risk; Operating Margin; Gross Domestic Product (GDP); Inflation Rate; Interest Rate; Exchange Rate;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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