Risk Taking and Performance of Public Insurers: An International Comparison

32 Pages Posted: 22 Nov 2012

See all articles by Paige Fields

Paige Fields

University of Kansas

Manu Gupta

Virginia Commonwealth University (VCU) - Department of Finance, Insurance & Real Estate

Puneet Prakash

Missouri State University

Multiple version iconThere are 2 versions of this paper

Date Written: December 2012

Abstract

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.

Suggested Citation

Fields, Paige and Gupta, Manu and Prakash, Puneet, Risk Taking and Performance of Public Insurers: An International Comparison (December 2012). Journal of Risk and Insurance, Vol. 79, Issue 4, pp. 931-962, 2012, Available at SSRN: https://ssrn.com/abstract=2179385 or http://dx.doi.org/10.1111/j.1539-6975.2012.01479.x

Paige Fields (Contact Author)

University of Kansas ( email )

1654 Naismith Dr.
Lawrence, KS 66045
United States

Manu Gupta

Virginia Commonwealth University (VCU) - Department of Finance, Insurance & Real Estate ( email )

Richmond, VA 23284
United States

Puneet Prakash

Missouri State University ( email )

United States
65897 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
1
Abstract Views
770
PlumX Metrics