Abstract The purpose of this research is to evaluate the technical efficiency of the insurance firms operating in Jordan and Palestine markets and examine the factors that affect this efficiency. Using a data of 26 insurance firms over the period 2016– 2020, data envelopment analysis (DEA) was used to evaluate efficiency score, and panel data analysis was employed to identity the major factors affecting the tech-nical efficiency of the listed insurance firms in Jordan and Palestine stocks exchange markets. The data envelopment analysis shows that the listed insurance firms in Palestine Exchange Market (PSE) are more efficient than those listed in Amman Stock Exchange Market (ASE). Panel data regression analysis shows that capital structure and firm size have both a negative effect on technical efficiency. However, both market share and ROA affect technical efficiency in a positive way. From these results management of firms could raise capital through issuing bonds instead of common stocks, and might not expand largely in company size without sufficient planning. Regularity body might issue laws and regulation which control how firms finance its assets in order to prevent an exaggerated increasing in firm’s total assets, and control the competition in order to avoid illegal collusion between firms.
Keywords Efficiency·Technical efficiency·Insurance·Jordan·Palestine·DEA

Title

Artificial intelligence and economic sustainability in the era of industrial revolution 5, the industrial Studies in Systems, Decision and Control 528

Publisher

Springer Nature Indexed by SCOPUS, DBLP, WTI Frankfurt eG, zbMATH, SCImago

Publisher Country

Switzerland

Indexing

Scopus

Impact Factor

None

Publication Type

Online only

Volume

528

Year

2024

Pages

491-509