Moderating effect of the COVID-۱۹ pandemic on the relationship between liquidity management and performance of Insurance companies

The coronavirus outbreak impacted severely the economy at both the international and the domestic levels. However, research that sought to establish this disease's effects on insurance firms' business operations was not established. Thus, this research aimed to analyze the moderating effect of COVID-۱۹ on insurance companies' liquidity management and performance, which are listed on the Tehran Stock Exchange (TSE) and Iran Fara Bourse (IFB). The present study is descriptive-correlational with data from ۱۸ insurance firms for the period of ۲۰۱۵-۲۰۲۲ using Stata software to conduct regression models to analyze the results. The findings showed that the current ratio and cash ratio are significantly positive with return on assets when used as proxies for liquidity management. The cash ratio only influences the return on equity positively and significantly, while it has no effect on the return on assets. Also, the COVID-۱۹ pandemic increases the correlation between the current ratio and the return on assets and the current ratio and the return on equity. However, it does not moderate the correlation between the cash ratio on one hand and the return on assets and return on equity on the other hand. Based on the findings of the study, it can be concluded that adequate liquidity enhances the public's confidence in the performance of the insurance organization, thus improving profits. During events such as the coronavirus pandemic, when the macroeconomy undergoes fundamental changes and the negative effects of COVID-۱۹ impact business and public health, causing increased payments by insurance companies, the liquidity situation and financial performance of insurance companies become more important compared to normal conditions.

کلیدواژه ها:

COVID-۱۹ pandemic occurrence ، Current Ratio ، Cash ratio ، Return on Assets ، Return on Equity