Journal ArticleDOI
Stock Versus Mutual Ownership Structures: The Risk Implications
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In this paper, the authors provide empirical tests of the risk differences between two types of ownership structure in the property-liability insurance industry and provide empirical evidence that suggests stock insurers have more risk than mutuals where the risk inherent in future cash flows is proxied by the variance of the loss ratio.Abstract:
This article provides empirical tests of the risk differences between two types of ownership structure in the property-liability insurance industry. Empirical evidence is provided that suggests stock insurers have more risk than mutuals where the risk inherent in future cash flows is proxied by the variance of the loss ratio. Further evidence suggests that stock insurers write relatively more business than do mutuals in lines and states having higher risk. Copyright 1993 by University of Chicago Press.read more
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The role of RBC, hurricane exposure, bond portfolio duration, and macroeconomic and industry-wide factors in property–liability insolvency prediction
Jiang Cheng,Mary A. Weiss +1 more
TL;DR: Cummins et al. as discussed by the authors analyzed the performance of the risk-based capital (RBC) ratio and other variables in predicting insolvencies in the property-liability insurance industry during the period 1994-2008.
Posted Content
Changes in Ownership Structure: Theory and Evidence from Life Insurer Demutualizations
TL;DR: In this paper, an empirical examination of several organizational structure hypotheses indicates that the level of free cash flow is significantly related to the likelihood of demutualization, and demundualization may be motivated by expropriation or by attempts to control associated agency costs.
Journal ArticleDOI
Firm-specific internal determinants of profitability performance: an exploratory study of selected life insurance firms in Asia
TL;DR: In this article, an exploratory study investigating firm-specific internal factors that influence the profitability performance of selected life insurance firms in eight Asian countries (China, Hong Kong, Taiwan, Singapore, Japan, South Korea, Thailand and Malaysia) from 2008-2014.
Ownership Structure and Risk: A Canadian Empirical Analysis
Mohamed A. Ayadi,Yoser Gadhoum +1 more
TL;DR: In this paper, a nonlinear relationship between managerial ownership and both total risk and systematic risk is uncovered, with higher risk-taking at lower and very high ownership levels, consistent with evidence of Chen and Steiner (1999) for U.S. non-financial firms.
Journal ArticleDOI
Issuance Decisions and Strategic Focus: The Case of Long-Term Care Insurance
Michael K. McShane,Larry A. Cox +1 more
TL;DR: It is found that strategic focus is a consistently important factor and that managers' participation and volume decisions are made independently.
References
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Journal ArticleDOI
Theory of the firm: Managerial behavior, agency costs and ownership structure
TL;DR: In this article, the authors draw on recent progress in the theory of property rights, agency, and finance to develop a theory of ownership structure for the firm, which casts new light on and has implications for a variety of issues in the professional and popular literature.
Journal ArticleDOI
The Nature of the Firm
TL;DR: In this paper, it is shown that a definition of a firm may be obtained which is not only realistic in that it corresponds to what is meant by a firm in the real world, but is tractable by two of the most powerful instruments of economic analysis developed by Marshall, the idea of the margin and that of substitution.
Journal ArticleDOI
Separation of ownership and control
Eugene F. Fama,Michael C. Jensen +1 more
TL;DR: The authors argue that the separation of decision and risk-bearing functions observed in large corporations is common to other organizations such as large professional partnerships, financial mutuals, and nonprofits. But they do not consider the role of decision agents in these organizations.
Journal ArticleDOI
The Structure of Corporate Ownership: Causes and Consequences
Harold Demsetz,Kenneth Lehn +1 more
TL;DR: In this paper, the authors argue that the structure of corporate ownership varies systematically in ways that are consistent with value maximization, and they find no significant relationship between ownership concentration and accounting profit rates for a set of firms.
Journal ArticleDOI
Agency Problems and Residual Claims
Eugene F. Fama,Michael C. Jensen +1 more
TL;DR: Jensen and Fama as mentioned in this paper developed a set of propositions that explaim the special features of the residual claims of different organizational forms as efficient approaches to controlling agency problems and explained the survival of organizational forms in specific activities.
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