ASSESSMENT OF CAPITAL STRUCTURE IN ETHIOPIAN INSURANCE COMPANY

Abstract

The main objective of this study is to examine the determinants of capital structure of selected insurance companies in Ethiopia. To achieve the objective, researcher used only secondary data obtained from the annual financial statement of selected insurance companies. To achieve stated objective, the researcher used descriptive research methods. Descriptive research designs focus on describing situation at set of circumstance by observing to give scientific description. The data was organized by using tables and figures to make it ready for processing. And the tabulated data would be analysed by using descriptive statistical analysis and it would be presented using graphs, table and percentage. Finally, Even if the ELIC has good position to covers the claims of creditors by using only its asset, these trends should continue unless it will affect Ethiopian insurance company in the long run. Even debt to total asset is in good position that more asset than liabilities and can meet its obligations, should continue in this trend for long term