THE FACTORS THAT DETERMINE THE CAPITAL STRUCTURE AMONG INSURANCE COMPANIES IN KOSOVO – EMPIRICAL ANALYSIS

Abstract

insurance companies in Kosovo, based on a data retrieved from 11
insurance companies during the period 2009-2012. For this purpose, the debt ratio
is taken as a dependant variable whereas company size, growth, life, fixed assets
and liquidity ratio were taken as independent variables. The result of RE model
shows that these variables are in positive relationship with the debt ratio. On the
other hand, the company size, the fixed assets ratio, liquidity ratio, company life
and growth had considerable effects on debt equation. Based on the research
results, the insurance companies should have a high consideration for asset
increase because the size of company is an important factor that has a positive
effect on debt/equity ratio