Journal ArticleDOI
The Impact of Firm Risk on Property-Liability Insurance Prices
TLDR
In this paper, the authors examined the impact of an insurer's level of insolvency risk on the prices the insurer obtains for its products in the property-liability insurance market.Abstract:
This article examines the impact of an insurer's level of insolvency risk on the prices the insurer obtains for its products in the property-liability insurance market. The measures of insolvency risk used are those implied by the option pricing model of insurance. The key finding is the existence of a negative relation between insolvency risk and insurance prices. This implies that property-liability insurers are penalized for default risk through lower prices, despite the existence of guaranty funds. Other firm-specific determinants of insurance prices are also identified. The results have significant implications for insurance researchers and regulators.read more
Citations
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Implications of Corporate Diversification and Focus Strategies
TL;DR: In this article, the authors investigated the potential role of the factors underlying the decision to diversify or focus on the ultimate impact of the selected strategy and found that diversification strategies are related to increases in the acquirers' operating margin and overall capitalization.
Journal ArticleDOI
Group firms’ access to internal capital markets: The contingent roles of group resources and affiliates’ financial weakness
Ching-Yuan Hsiao,Yung-Ming Shiu +1 more
TL;DR: In this paper, the authors investigate how group's value maximization considerations determine affiliates' access to internal capital and reveal that financially-weak firms' capital shortage positively affects the receipt of internal capital when groups own abundant resources.
Journal ArticleDOI
Internationalization of the Reinsurance Industry: An Analysis of the Net Exposure of Reinsurers
TL;DR: In this paper, the authors use the framework of the eclectic paradigm to empirically investigate the decision of U.S. reinsurers to internationalize based on their net exposure in both developed and developing nations.
Journal ArticleDOI
Foreign Participation and Its Relationship with Non-Life Insurer Performance in the Northeast Asian Markets
TL;DR: In this article, the authors examined the relationship shared by a national insurance market's competitive structure and insurer profitability in four major non-life insurance markets of Asia: Japan, the People's Republic of China, South Korea and Taiwan.
Ownership and Performance in Close Corporations
Venky Nagar,Kathy R. Petroni +1 more
TL;DR: In this article, the authors find that shares in close corporations report substantially larger return on assets (by 4 to 12 percentage points) and lower expense-to-sales ratios.
References
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Journal ArticleDOI
Elements of Econometrics.
Ian Domowitz,Jan Kmenta +1 more
TL;DR: The Elements of Econometrics as mentioned in this paper is a textbook for upper-level undergraduate and master's degree courses and may usefully serve as a supplement for traditional Ph.D. courses in economics.
Book
Elements of econometrics
TL;DR: The emphasis is on simplification whenever possible, assuming the readers know college algebra and basic calculus, and Jan Kmenta explains all methods within the simplest framework, and generalizations are presented as logical extensions of simple cases.
Journal ArticleDOI
Contractual Provisions, Organizational Structure, and Conflict Control in Insurance Markets
David Mayers,Clifford W. Smith +1 more
TL;DR: In this article, the authors provide a foundation for a positive theory of insurance contracting with examples of its testable predictions and argue that incentive conflicts arise when discretionary action is authorized and that contractual provisions and organizational structures control sources of conflict within the insurance market.
Journal ArticleDOI
Price, Financial Quality, and Capital Flows in Insurance Markets
TL;DR: In this article, the authors developed a model of price determination in insurance markets, which predicts that the price of insurance, measured by the ratio of premiums to discounted losses, is inversely related to insurer default risk.
Journal ArticleDOI
Stock Versus Mutual Ownership Structures: The Risk Implications
TL;DR: 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.
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