Risk-Taking and Performance of Public Insurers: An International Comparison
L. Paige Fields
affiliation not provided to SSRN
Virginia Commonwealth University (VCU) - Department of Finance, Insurance & Real Estate
Virginia Commonwealth University
Feb 2, 2012
Journal of Risk and Insurance, Forthcoming
We investigate how investor protection, government quality, and contract enforcement affect risk-taking and performance of insurance companies from around the world. We find that better investor protection results in less risk-taking, as do higher quality government and greater contract enforceability. However, we find only limited evidence that these factors influence firm performance. We conclude that better overall operating environments result in less risk-taking by insurers without the concomitant decline in performance. These results imply that better investor protection environments benefit policyholders and outside stockholders by preventing corporate insiders from expropriating wealth from policyholders and outside stockholders.
Number of Pages in PDF File: 40
Keywords: Risk-taking, Performance, Investor Protection, Government Quality
JEL Classification: G3, G22, G18, K22Accepted Paper Series
Date posted: March 22, 2012
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo1 in 0.375 seconds