Global Impact of the Gramm-Leach-Bliley Act: Evidence from Insurance Industries of Developed Countries

Networks Financial Institute Working Paper No. 2009-WP-13

23 Pages Posted: 13 Nov 2009

See all articles by M. Kabir Hassan

M. Kabir Hassan

University of New Orleans - College of Business Administration - Department of Economics and Finance

Abdullah Mamun

University of Saskatchewan - Department of Finance and Management Science

Date Written: November 1, 2009

Abstract

This paper investigates the impact of the Gramm-Leach-Bliley Act (GLBA) on the insurance industries of developed countries. We find that the insurance industries of most of the developed countries in our sample have significant negative spillover effects from the GLBA. Further, we find that the impact of this deregulation on the insurance industries of any two countries is not same. After controlling for country-specific effect, we find that profitability can explain the impact of the GLBA on non-U.S. insurance companies. This result is robust whether we use ordinary least squares or bootstrap as the estimation technique. However, we do not find any evidence demonstrating that the impact of the GLBA is statistically different for firms that are from European Union member countries versus those that are not.

Keywords: Gramm-Leach-Bliley Act, Wealth Effect, Policy Implications, Insurance Industry

JEL Classification: G21, G28

Suggested Citation

Hassan, M. Kabir and Mamun, Abdullah, Global Impact of the Gramm-Leach-Bliley Act: Evidence from Insurance Industries of Developed Countries (November 1, 2009). Networks Financial Institute Working Paper No. 2009-WP-13, Available at SSRN: https://ssrn.com/abstract=1504794 or http://dx.doi.org/10.2139/ssrn.1504794

M. Kabir Hassan (Contact Author)

University of New Orleans - College of Business Administration - Department of Economics and Finance ( email )

2000 Lakeshore Drive
New Orleans, LA 70148
United States

Abdullah Mamun

University of Saskatchewan - Department of Finance and Management Science ( email )

College of Commerce
Saskatoon, Saskatchewan S7N 5A7
Canada
306 966 1862 (Phone)
306 966 2515 (Fax)

HOME PAGE: http://www.commerce.usask.ca/faculty/mamun/

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