On the Demand for Corporate Property Insurance

Hoyt, Robert; Khang, Ho

doi:10.2307/253678

Cited by 92 publications

(41 citation statements)

References 24 publications

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“…Third, small entities are not normally well diversified and so they are particularly susceptible to business risks (Barnea et al, 1985). The findings of some prior studies (e.g., Hoyt and Khang, 2000) also support the inverse relation between company size and the corporate decision to purchase insurance. Therefore, I expect that small companies are likely to purchase (relatively) more property insurance than large companies, other things being equal.…”

Section: Research Questionssupporting

confidence: 59%

“…First, the expected direct costs of financial distress are not usually proportional to size (e.g., see Warner, 1977). Second, small companies tend to gain more from insurers' real services (e.g., loss prevention) than large companies (e.g., see Hoyt and Khang, 2000). Third, small entities are not normally well diversified and so they are particularly susceptible to business risks (Barnea et al, 1985).…”

Section: Research Questionsmentioning

confidence: 99%

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Corporate insurance market in the People’s Republic of China: some macro and micro perspectives

Zou

2003

Managerial Finance

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractThis paper analyses the development, regulation and future trend of the corporate insurance market in the People's Republic of China (PRC). Using data for 212 Chinese listed companies over the period 1997-99, this study provides some preliminary empirical evidence regarding the property insuring behaviour of Chinese companies. I find that the level of property insurance spending in Chinese companies is inversely related to company size and leverage. Additionally, the purchase of property insurance appears to vary according to geographical location and industry sectors. However, foreign ownership does not appear to have important influences on the managerial property insurance decisions in the Chinese corporate sector. The findings of this study could thus have important implications for various groups (e.g., corporate lenders and foreign insurers) that are interested in the Chinese corporate sector and insurance markets.

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Section: Research Questionssupporting

confidence: 59%

Section: Research Questionsmentioning

confidence: 99%

Corporate insurance market in the People’s Republic of China: some macro and micro perspectives

Zou

2003

Managerial Finance

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“…The empirical evidence around these theoretical predictions is mixed: Mayers and Smith (1990), Ashby and Diacon (1998), Hoyt and Khang (2000), and Cole and McCullough (2006) support this view; instead, Regan and Hur (2007) and Zou and Adams (2008) claim exactly the opposite.…”

Section: Literature Reviewmentioning

confidence: 99%

The Effect of the Enterprise Risk Management Implementation on the Firm Value of European Companies

2013

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We aim to investigate the impact of the adoption of an Enterprise Risk Management (ERM) system on the enterprise value and to discover which are the determinants of this choice. Several economic actors have decided to face the current economic and financial complexity shifting from a Traditional silo-based Risk Management approach (TRM) to a more comprehensive one, the so called Enterprise Risk Management (ERM). Some academics have tried to investigate the effects of the ERM implementation on firm value, mainly focusing on the financial industry. The results are still controversial. Moreover, there is no empirical evidence about the adoption of ERM programs among non-financial companies. The aim of our study is double: first, we try to understand if the ERM implementation affects firm value on a sample of 200 European companies, belonging to both financial and non-financial industries; second, we test which are the determinants of the adoption of an ERM system. We do this performing a fixed effects panel regression analysis (goal 1) and a fixed effects logistic analysis (goal 2). We find a positive statistically significant relation between the ERM adoption and firm value. As for the probability that a firm engages in an ERM protocol, we find that size, the company beta and profitability (ROA) are the statistically significant determinants. JEL Classifications: G32, L22, L25,

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“…On the one hand, 21 Mayers and Smith (1990); Garven and Lamm-Tennant (2003); Cole and McCullough (2006). 22 Mayers and Smith (1990); Hoyt and Khang (2000); Garven and Lamm-Tennant (2003); Weiss and Chung (2004); Cole and McCullough (2006). 23 Garven and Lamm-Tennant (2003).…”

Section: Data and Variables Descriptionmentioning

confidence: 99%

Demutualization and Demand for Reinsurance

Wang

Chang

Lai³

et al. 2008

Geneva Pap Risk Insur Issues Pract

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This study investigates whether U.S. property-liability insurers change their demand for reinsurance after demutualization. Our empirical results show that the overall demand for reinsurance of converting insurers is not statistically different after the conversion. Furthermore, we find that converting insurers decrease the demand for reinsurance from non-affiliated reinsurers, but increase the demand for reinsurance from affiliated reinsurers after the conversion. One possible explanation is that converting insurers may treat reinsurance to affiliated reinsurers as risk retention rather than risk transfer so that they can reduce reinsurance cost. Another interesting finding is that converting insurers increase demand for reinsurance from non-affiliated reinsurers before conversion.

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On the Demand for Corporate Property Insurance

Cited by 92 publications

References 24 publications

Corporate insurance market in the People’s Republic of China: some macro and micro perspectives

Corporate insurance market in the People’s Republic of China: some macro and micro perspectives

The Effect of the Enterprise Risk Management Implementation on the Firm Value of European Companies

Demutualization and Demand for Reinsurance

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