Publications-Theses
Article View/Open
Publication Export
-
題名 三篇保險公司和再保險公司長期關係的研究
Three Essays on the Insurer-Reinsurer Relationship作者 陳瑞祥
Chen, Juei-Hsiang貢獻者 許永明
Shiu, Yung-Ming
陳瑞祥
Chen, Juei-Hsiang關鍵詞 再保險交易關係
核保利潤
業務多角化
市佔率
不對稱學習假說
The tenure of insurer-reinsurer relationship
Underwriting profitability
Product diversification
Market share日期 2021 上傳時間 10-Feb-2022 12:55:32 (UTC+8) 摘要 在實務與文獻上，概念上皆認為分保公司與再保險人維持愈久的交易關係，有助於提升再保險契約或市場交易的效率。然而，關於再保險交易關係如何影響分保公司的實證研究，非常地稀少。至今僅有幾篇學術研究以理論方式推論或者利用實際資料檢定當再保險交易關係期間愈長時，是否對於分保公司的財務績效、再保險使用程度與破產風險造成影響。因此，當再保險交易關係期間愈長，是否會對分保公司的其他面向營運績效造成影響，是目前學術上尚未探討並且是值得探討的重要問題。不對稱學習(Asymmetric learning)是再保險交易關係對分保公司造成影響的主要機制，即再保險契約訂立之初，再保險契約交易雙方存在資訊不對稱，此時再保險公司並未清楚分保業務真實的風險程度，因此無法訂立公允的再保險價格。隨著再保險交易關係期間愈來愈久，再保險公司持續地獲得與累積其承保業務的理賠資訊，愈來愈清楚業務的風險性質，並將其資訊用於風險分類與再保險定價。因此，當再保險交易關係期間短時，再保險資訊不對稱程度愈高；然而，當交易關係期間長時，資訊不對稱程度愈低。換句話說，在不同再保險交易關係期間下，分保公司與再保險公司同時面臨不同程度的資訊不對稱現象，因此分保公司面臨不同的誘因並進一步做出對本身有利的決策，進而造成不同面向的影響效果。除此之外，文獻上捕捉再保險交易關係的指標也稀少，目前文獻發展的指標僅捕捉時間面向的關係，然而，在衡量再保險交易關係時，也必須將再保險交易的金額多寡納入考量，以避免在計算關係指標時納入太多交易金額太少的再保險交易，進而無法捕捉重要的再保險交易關係。因此，本文藉由考量過去五年累積分保保費金額的方式進一步捕捉各種重要性程度的再保險交易關係，即創造同時捕捉時間與交易金額面向的衡量再保險交易關係的指標。本博士論文由三篇探討再保險交易關係如何影響美國產險業分保公司不同面向的績效所組成，概念上，本論文想要回答以下三個問題，即分保公司的核保利潤、業務多角化與市佔率是否會隨著再保險交易關係期間的增長而隨之變動。換句話說，探討承保活動、風險管理策略與策略績效是否與再保險交易關係有相關。第一篇文章探討當再保險交易關係期間愈長時，分保公司的損失率、綜合率與核保利潤如何受到影響。藉由非線性變數的配置，一階段系統和差分動差法的迴歸模型估計，實證結果顯示，再保險交易關係和損失率與綜合率皆呈現倒U型關係，再保險交易關係和核保利潤呈現U型的關係。再保險交易關係短的時候，損失率和綜合率會隨著再保險交易關係的延長而增加，核保利潤則會隨之降低。當再保險交易關係久時，損失率和綜合率皆會隨著再保險交易關係的延長而降低，核保利潤則會隨之增加。因此，本文提出實證證據支持不對稱學習假說。第二篇文章檢視再保險交易關係如何影響分保公司的業務多角化程度，並且探討何種因素調節再保險交易關係與多角化程度的相關性。利用一般最小平方法與隨機效果Tobit模型估計，實證結果顯示，當再保險交易的關係持續時，分保公司的商品多角化程度會愈高，也發現公司規模將減緩上述再保險交易關係與多角化程度相關性。因此，本文提出實證證據支持不對稱學習假說與真實服務假說。第三篇文章則額外考量到市場上同時競爭的保險公司，探討再保險交易關係如何影響分保公司的市占率。藉由非線性變數的配置，一階段系統和差分動差法模型的估計，實證結果顯示，再保險交易關係與市占率呈現倒U型關係。因此，本文提供支持不對稱學習假說的證據。因此，本博士論文提供較完整的證據，回答文獻和實務上尚未回答的問題，即維持愈長期的再保險交易關係，會影響到分保公司哪些面向？再保險交易關係造成的影響效果，是否會隨著累積的交易關係年數而改變？本論文的實證結果可呼應再保險市場依賴長期交易關係的觀點，並且可進一步給實務人士、學術研究者、監理官和要保人等相關的利害關係人提供參考，以供進一步的決策依據。
It is well known in practice and in academic research that the efficiency of reinsurance transaction is on the long-term transaction relationship basis. However, how reinsurance relationship has an influence on cedants is an underexplored issue in academic research. Specifically, only few studies derive, theoretically, and examine, empirically, the effects of the tenure of insurer-reinsurer relationship on financial performance, reinsurance usage, and bankruptcy costs of cedants. The questions left to be answered in current reinsurance relationship literature are what other dimensions of cedants could be influenced by the reinsurance relation’s duration.The underlying mechanism of reinsurance relationship is learning over time, called asymmetric learning phenomenon. Specifically, reinsurers could gradually learn the risk of ceded business over time. In addition, the measure of capturing the reinsurance relationship is scarce in recent reinsurance relationship studies. Thus, we also improve such measures by taking the amount of reinsurance premium ceded in the past 5 years into account to capture various level of importance of reinsurance relationship. That is, we construct the reinsurance relationship measure simultaneously considering time and transaction amount dimensions.Therefore, in this thesis, we present three essays on the effects of the tenure of insurer-reinsure relationship in US property-casualty insurance industry. Conceptually, this thesis intends to answer the questions of how underwriting profitability (underwriting activities), product diversification (risk management strategies), and market share (strategic performance) are affected with the increase of the tenure of insurer-reinsurer relationship.The first essay investigates how the tenure of insurer-reinsurer relationship affects underwriting profitability, including loss ratio and combined ratio, of cedants. The results document that the tenure of insurer-reinsurer relationship is inverted U-shaped related with loss ratio and combined ratio, respectively. In addition, a U-shaped relationship between the tenure of insurer-reinsurer relationship and underwriting profitability is found. The results are consistent with asymmetric learning hypothesis.The second essay empirically scrutinizes the effect of reinsurance relationship’s tenure on product diversification. The results show that cedants tend to diversify more with the increase of the relation’s duration. In addition, we also find that such effect is mitigated as the firm size increases. The results are consistent with asymmetric learning hypothesis and real service hypothesis.The third essay, considering other rivals in insurance markets, empirically investigates the effect of the tenure of insurer-reinsurer relationship on market share. The result documents that such tenure is inverted U-shaped related with market share. The results are also consistent with asymmetric learning hypothesis.Overall, the implication of this PhD dissertation is that maintaining longer relationship with incumbent reinsurers is beneficial for cedants and various stakeholders, especially for those with long reinsurance relationship.參考文獻 Essay 1:Adams, M., 1995, Balance Sheet Structure and the Managerial‐Discretion Hypothesis: An Exploratory Empirical Study of New Zealand Life Insurance Companies, Accounting & Finance, 35(1): 21-45.Adams, M., B. Burton, and P. Hardwick, 2003, The Determinants of Credit Ratings in the United Kingdom Insurance Industry, Journal of Business Finance & Accounting, 30(3‐4): 539-572.Adams, M., and W. Jiang, 2016, Do Outside Directors Influence the Financial Performance of Risk-trading Firms? Evidence from the United Kingdom (UK) Insurance Industry, Journal of Banking & Finance, 64: 36-51.Adams, M., V. Upreti, and J. Chen, 2019, Product-market Strategy and Underwriting Performance in the United Kingdom’s Property–casualty Insurance Market, The European Journal of Finance, 25(11): 1012-1031.Altuntas, M., J. Garven, and J. Rauch, 2018, On the Corporate Demand for Insurance: Evidence from the Global Reinsurance Market, Risk Management and Insurance Review, 21(2): 211-242.Anand, V., J. Tyler Leverty, and K. Wunder, 2020, Paying for Expertise: The Effect of Experience on Insurance Demand, Journal of Risk and Insurance, 1-30.Andreou, C. K., P. C. Andreou, and N. Lambertides, 2021, Financial Distress Risk and Stock Price Crashes, Journal of Corporate Finance, 67: 101870.Arellano, M., and S. Bond, 1991, Some Tests of Specification for Panel Data: Monte Carlo Evidence and An Application to Employment Equations, The Review of Economic Studies, 58(2): 277-297.Berry‐Stölzle, T. R., and P. Born, 2012, The Effect of Regulation on Insurance Pricing: the Case of Germany, Journal of Risk and Insurance, 79(1): 129-164.Berry‐Stölzle, T. R., A. P. Liebenberg, J. S. Ruhland, and D. W. Sommer, 2012, Determinants of Corporate Diversification: Evidence from the Property–liability Insurance Industry, Journal of Risk and Insurance, 79(2): 381-413.Bharath, S. T., S. Dahiya, A. Saunders, and A. Srinivasan, 2011, Lending Relationships and Loan Contract Terms, The Review of Financial Studies, 24(4): 1141-1203.Blundell, R., and S. Bond, 1998, Initial Conditions and Moment Restrictions in Dynamic Panel Data Models, Journal of Econometrics, 87(1): 115-143.Boot, A.W., 2000, Relationship Banking: What Do We Know?, Journal of Financial Intermediation, 9(1): 7–25.Boyer, M. M., E. Jacquier, and S. Van Norden, 2012, Are Underwriting Cycles Real and Forecastable?, Journal of Risk and Insurance, 79(4): 995-1015.Browne, M. J., and T. Zhou-Richter, 2014, Lemons or Cherries? Asymmetric Information in the German Private Long-term Care Insurance Market, The Geneva Papers, 39: 603-624.Chang, V. Y., 2019, Does Reinsurance Purchasing Enhance Insurers’ Competitiveness? Evidence from the US property–liability Insurance Industry, The Geneva Papers on Risk and Insurance-Issues and Practice, 44(4): 595-623.Chang, V. Y., and V. S. Jeng, 2016, The Relationship Among the Demand for Reinsurance, Liquidity, and Leverage in the US Property-Liability Insurance Industry, Taiwan Economic Review, 44(4): 543-576.Che, X., and A. P. Liebenberg, 2017, Effects of Business Diversification on Asset Risk-taking: Evidence from the US Property-liability Insurance Industry, Journal of Banking and Finance, 77: 122-136.Chen, J. H., and Y. M. Shiu, 2020a, Does Asymmetric Information Exist in the Reinsurance Markets of Taiwan? Applying Quantile Regression and Natural-Experiment Method, Management Review, 39: 123-140.Chen, J. H., and Y. M. Shiu, 2020b, Does Asymmetric Information Exist in Taiwanese Fire Reinsurance Markets? Taiwan Insurance Review, 36(1): 1-26.Cheng, J., and M. A. Weiss, 2012, The Role of RBC, Hurricane Exposure, Bond Portfolio Duration, and Macroeconomic and Industry‐wide Factors in Property–Liability Insolvency Prediction, Journal of Risk and Insurance, 79(3): 723-750.Cohen, A., 2005, Asymmetric Information and Learning: Evidence from the Automobile Insurance Market, Review of Economics and statistics, 87(2): 197-207.Cohen, A., and P. Siegelman, 2010, Testing for Adverse Selection in Insurance Markets, Journal of Risk and Insurance, 77(1): 39-84.Cohen, A., 2012, Asymmetric Learning in Repeated Contracting: An Empirical Study, Review of Economics and Statistics, 94(2): 419-432.Cole, C. R., and K. A. McCullough, 2006, A Reexamination of the Corporate Demand for Reinsurance, Journal of Risk and Insurance, 73(1): 169-192.Cooper, R., and B. Hayes, 1987, Multi-period Insurance Contracts, International Journal of Industrial Organization, 5(2): 211-231.Cummins, J. D., G. Dionne, R. Gagné, and A. Nouira, 2021, The Costs and Benefits of Reinsurance, The Geneva Papers on Risk and Insurance-Issues and Practice, 46(2): 177-199.Cummins, J. D., and J. F. Outreville, 1992, An International Analysis of Underwriting Cycles in Property-liability Insurance. In: Dionne G., Harrington S.E. (eds) Foundations of Insurance Economics. Huebner International Series on Risk, Insurance and Economic Security, 14. Springer, Dordrecht.Cummins, J. D., M. A. Weiss, and H. Zi, 1999, Organizational Form and Efficiency: The Coexistence of Stock and Mutual Property-liability Insurers, Management Science, 45(9): 1254-1269.Cummins, J. D., and H. Zi, 1998, Comparison of Frontier Efficiency Methods: An Application to the US Life Insurance Industry, Journal of Productivity Analysis, 10(2): 131-152.Dardanoni, V., A. Forcina, and P. L. Donni, 2018, Testing for Asymmetric Information in Insurance Markets: A Multivariate Ordered Regression Approach, Journal of Risk and Insurance, 85(1): 107-125.de Garidel-Thoron, T., 2005, Welfare-improving Asymmetric Information in Dynamic Insurance Markets, Journal of Political Economy, 113(1): 121-150.Dell`Ariccia, G., E. Friedman, and R. Marquez, 1999, Adverse Selection as a Barrier to Entry in the Banking Industry, The RAND Journal of Economics, 515-534.Dionne, G., and N. A. Doherty, 1994, Adverse Selection, Commitment, and Renegotiation: Extension to and Evidence from Insurance Markets, Journal of Political Economy, 102(2): 209-235.Doherty, N. A., and S. M. Tinic, 1981, Reinsurance under Conditions of Capital Market Equilibrium: A Note, Journal of Finance, 36: 949–953.Doherty, N., and K. Smetters, 2005, Moral Hazard in Reinsurance Markets, Journal of Risk and Insurance, 72(3): 375-391.Donker, H., A. Ng, and P. Shao, 2020, Borrower Distress and the Efficiency of Relationship Banking, Journal of Banking & Finance, 112: 105275.Eling, M., R. Jia, and Y. Yao, 2017, Between‐Group Adverse Selection: Evidence from Group Critical Illness Insurance, Journal of Risk and Insurance, 84(2): 771-809.Farah, T., J. Li, Z. Li, and A. Shamsuddin, 2021, The Non-linear Effect of CSR on Firms’ Systematic Risk: International Evidence, Journal of International Financial Markets, Institutions and Money, 71, 101288.Frank, M. Z., and V. K. Goyal, 2009, Capital Structure Decisions: Which Factors Are Reliably Important?, Financial Management, 38(1): 1-37.Froot, K. A, 2007, Risk Management, Capital Budgeting, and Capital Structure Policy for Insurers and Reinsurers, Journal of Risk and Insurance, 74(2): 273-299.Froot, K. A., and P. G. O’Connell, 2008, On the Pricing of Intermediated Risks: Theory and Application to Catastrophe Reinsurance, Journal of Banking & Finance: 32(1): 69-85.Garven, J. R., J. I. Hilliard, and M. F. Grace, 2014, Adverse Selection in Reinsurance Markets, The Geneva Risk and Insurance Review, 39(2): 222-253.Gao, F., M. R. Powers, and J. Wang, 2017, Decomposing Asymmetric Information in China`s Automobile Insurance Market, Journal of Risk and Insurance, 84(4): 1269-1293.Géczy, C., B. A. Minton, and C. Schrand, 1997, Why Firms Use Currency Derivatives, Journal of Finance, 52(4): 1323-1354.Giroud, X., and H. M. Mueller, 2010, Does Corporate Governance Matter in Competitive Industries?, Journal of Financial Economics, 95(3): 312-331.Gravelle, H., 1994, Remunerating Information Providers: Commissions Versus Fees in Life Insurance, Journal of Risk and Insurance, 425-457.Harrington, S. E., and T. Yu, 2003, Do Property‐Casualty Insurance Underwriting Margins Have Unit Roots?, Journal of Risk and Insurance, 70(4): 715-733.Hardwick, P., M. Adams, and H. Zou, 2011, Board Characteristics and Profit Efficiency in the United Kingdom Life Insurance Industry, Journal of Business Finance & Accounting, 38(7‐8): 987-1015.He, J., R. Rejesus, X. Zheng, and J. Yorobe Jr, 2018, Advantageous Selection in Crop Insurance: Theory and Evidence, Journal of Agricultural Economics, 69(3): 646-668.Hendershott, T., D. Li, D. Livdan, and N. Schürhoff, 2020, Relationship Trading in Over‐the‐Counter Markets, The Journal of Finance, 75(2): 683-734.Ho, C. L., 2017, CEO Turnover and Reinsurance Demand in the U.S. Property Casualty Insurance Industry, NTU Management Review, 245-288.Hsu, W. Y., Y. Huang, and G. Lai, 2015, Corporate Governance and Cash Holdings: Evidence from the US property–liability Insurance Industry, Journal of Risk and Insurance, 82(3): 715-748.Huang, L. Y., G. C. Lai, E. Lu, and M. McNamara, 2020, Auditor Quality, Audit Fees, Organizational Structure, and Risk Taking in the US life insurance industry, Risk Management and Insurance Review, 23(2): 151-182.Insurance Research Council, 1991, Adequacy of Motor Vehicle Records in Evaluating Driver Performance (Malvern, PA: Insurance Research Council).Ioannidou, V. and S. Ongena, 2010, “Time for A Change”: Loan Conditions and Bank Behavior when Firms Switch Banks, The Journal of Finance, 65(5): 1847-1877.Jean-Baptiste, E. L., and A. M. Santomero, 2000, The Design of Private Reinsurance Contracts, Journal of Financial Intermediation, 9(3): 274-297.Kennedy, P., 1998, A Guide to Econometrics. fourth ed. Blackwell Publishers.Klein, R. W., 2013, Insurance Market Regulation: Catastrophe Risk, Competition, and Systemic Risk. In Handbook of insurance (pp. 909-939). Springer, New York, NY.Kofman, P., and G. P. Nini, 2013, Do Insurance Companies Possess an Informational Monopoly? Empirical Evidence from Auto Insurance, Journal of Risk and Insurance, 80(4): 1001-1026.Kunreuther, H., and M. Pauly, 1985, Market Equilibrium with Private Knowledge. In: Dionne G., Harrington S.E. (eds) Foundations of Insurance Economics. Huebner International Series on Risk, Insurance and Economic Security, vol 14. Springer, Dordrecht.Kysucky, V., and L. Norden, 2016, The Benefits of Relationship Lending in a Cross-country Context: A Meta-analysis, Management Science, 62(1): 90-110.Lai, G. C., and P. Limpaphayom, 2003, Organizational Structure and Performance: Evidence from the Nonlife Insurance Industry in Japan, Journal of Risk and Insurance, 70(4): 735-757.Laing, D., 1994, Involuntary Layoffs in a Model with Asymmetric Information Concerning Worker Ability, The Review of Economic Studies, 61(2): 375-392.Lamm-Tennant, J., and L. T. Starks, 1993, Stock versus Mutual Ownership Structures: the Risk Implications, Journal of Business, 29-46.Lin, C., M. S. Officer, and H. Zou, 2011, Directors` and Officers` Liability Insurance and Acquisition Outcomes, Journal of Financial Economics, 102(3): 507-525.Lind J. T., and H. Mehlum, 2010, With or without U? The Appropriate Test for a U-shaped Relationship, Oxford Bulletin of Economics and Statistics, 72(1): 109–118.Liu, H. H., Y. M. Shiu, and T. C. Liu, 2016, Reinsurance and Liquidity: Evidence from the United Kingdom General Insurance Industry, The Geneva Papers on Risk and Insurance-Issues and Practice, 41(2): 307-324.Ma, Y. L., and Y. Ren, 2021, Insurer Risk and Performance Before, During, and After the 2008 Financial Crisis: The Role of Monitoring Institutional Ownership, Journal of Risk and Insurance, 88(2): 351-380.Mankai, S., and A. Belgacem, 2016, Interactions between Risk Taking, Capital, and Reinsurance for Property–liability Insurance Firms, Journal of Risk and Insurance, 83(4): 1007-1043.Marvel, H. P., 1982, Exclusive Dealing, The Journal of Law and Economics, 25(1): 1-25.Modigliani, F., and M. H. Miller, 1958, The Cost of Capital, Corporation Finance and the Theory of Investment, American Economic Review, 48(3): 261-297.Nilssen, T., 2000, Consumer Lock-in With Asymmetric Information, International Journal of Industrial Organization, 18(4): 641-666.Olivella, P., and M. Vera‐Hernández, 2013, Testing for Asymmetric Information in Private Health Insurance, The Economic Journal, 123(567): 96-130.Park, S. C., X. Xie, and P. Rui, 2019, The Sensitivity of Reinsurance Demand to Counterparty Risk: Evidence from the US Property–liability Insurance Industry, Journal of Risk and Insurance, 86(4): 915-946.Petersen, M. A., and R. Raghuram, 1994, The Benefit of Lender Relationships: Evidence from Small Business Data, Journal of Finance, 49: 3–37.Plantin, G., 2006, Does Reinsurance Need Reinsurers?, Journal of Risk and Insurance, 73(1): 153-168.Pooser, D. M., and M. J. Browne, 2018, The Effects of Customer Satisfaction on Company Profitability: Evidence from the Property and Casualty Insurance Industry, Risk Management and Insurance Review, 21(2): 289-308.Pottier, S. W., and D. W. Sommer, 1997, Agency Theory and Life Insurer Ownership Structure, Journal of Risk and Insurance, 529-543.Powell, L. S., D. W. Sommer, and D. L. Eckles, 2008, The Role of Internal Capital Markets in Financial Intermediaries: Evidence from Insurer Groups, Journal of Risk and Insurance, 75(2): 439-461.Rothschild, M., and J. Stiglitz, 1976, Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information, The Quarterly Journal of Economics, 90(4): 629-649.Serafeim, G., 2011, Consequences and Institutional Determinants of Unregulated Corporate Financial Statements: Evidence from Embedded Value Reporting, Journal of Accounting Research, 49(2): 529-571.Sheikh, S., A. M. Syed, and S. S. A. Shah, 2018, Corporate Reinsurance Utilisation and Capital Structure: Evidence from Pakistan Insurance Industry, The Geneva Papers on Risk and Insurance-Issues and Practice, 43(2): 300-334.Shi, P., and W. Zhang, 2016, A Test of Asymmetric Learning in Competitive Insurance with Partial Information Sharing, Journal of Risk and Insurance, 83(3): 557-578.Shim, J., 2017, An Investigation of Market Concentration and Financial Stability in Property–liability Insurance Industry, Journal of Risk and Insurance, 84(2): 567-597.Shiu, Y. M., 2011, Reinsurance and Capital Structure: Evidence from the United Kingdom Non‐life Insurance Industry, Journal of Risk and Insurance, 78(2): 475-494.Shiu, Y. M., 2016, Is Reinsurance a Substitute for or a Complement to Derivative Usage? Evidence from the UK non-life Insurance Industry, The Geneva Papers on Risk and Insurance-Issues and Practice, 41(1): 161-178.Sonnenholzner, M., S. Friese, and J. M. G. v. d. Schulenburg, 2009, Reinsurance Brokers and Advice Quality: Is There A Need for Regulation?, The Geneva Risk and Insurance Review, 34(1): 20-46.Spindler, M., 2015, Asymmetric Information in (Private) Accident Insurance, Economics Letters, 130: 85-88.Upreti, V., and M. Adams, 2015, The Strategic Role of Reinsurance in the United Kingdom’s (UK) Non-life Insurance Market, Journal of Banking & Finance, 61: 206-219.Veprauskaite, E., and M. B. Adams, 2018, Leverage and Reinsurance Effects on Loss Reserves in the United Kingdom’s Property–casualty Insurance Industry, Accounting and Business Research, 48(4): 373-399.Yan, Z., 2013, Testing for Moral Hazard in Reinsurance Markets, Managerial Finance, 39(8): 696-713.Yan, Z., and L. Hong, 2015, Testing for Asymmetric Information in Reinsurance markets, The Geneva Papers on Risk and Insurance-Issues and Practice, 40(1): 29-46.Yanase, N., and P. Limpaphayom, 2017, Organization Structure and Corporate Demand for Reinsurance: The Case of the Japanese Keiretsu, Journal of Risk and Insurance, 84(2): 599-629.Wang, K. C., J. L. Peng, Y. Y. Sun, and Y. C. Chang, 2011, The Asymmetric Information Problem in Taiwan`s Cancer Insurance Market, The Geneva Risk and Insurance Review, 36(2): 202-219.Warner, J. B., 1977, Bankruptcy Costs: Some Evidence, Journal of Finance, 32: 337-348.Wooldridge, J. M., 2016, Introductory Econometrics: A Modern Approach, 4th ed. Canada: South-Western Cengage Learning.Wu, C. S. P., and H. Lin, 2009, Large Scale Analysis of Persistency and Renewal Discounts for Property and Casualty Insurance, CAS E-Forum, Winter: 396-408. Available at https://www.casact.org/pubs/forum/09wforum/.Essay 2:Adam, T., S. Dasgupta, and S. Titman, 2007, Financial Constraints, Competition, and Hedging in Industry Equilibrium, The Journal of Finance, 62(5): 2445-2473.Adams, M., and W. Jiang, 2016, Do Outside Directors Influence the Financial Performance of Risk-trading Firms? Evidence from the United Kingdom (UK) insurance industry, Journal of Banking & Finance, 64: 36-51.Aggarwal, R. K., and A. A. Samwick, 2003, Why Do Managers Diversify Their Firms? Agency Reconsidered, Journal of Finance, 58: 71-118.Ai, J., V. Bajtelsmit, and T. Wang, 2018, The Combined Effect of Enterprise Risk Management and Diversification on Property and Casualty Insurer Performance, Journal of Risk and Insurance, 85(2): 513-543.Akerlof, G. A, 1978, The Market for “Lemons”: Quality Uncertainty and the Market Mechanism, In Uncertainty in Economics (pp. 235-251). Academic Press.Altuntas, M., J. Garven, and J. Rauch, 2018, On the Corporate Demand for Insurance: Evidence from the Global Reinsurance Market, Risk Management and Insurance Review, 21(2): 211-242.Altuntas, M., and G. Gößmann, 2016, The Relationship between Home Market Performance and Internationalization Decisions: Evidence from German Insurance Groups, Risk Management and Insurance Review, 19(1): 37-71.Amihud, Y., and B. Lev, 1981, Risk Reduction as a Managerial Motive for Conglomerate Mergers, The Bell Journal of Economics, 605-617.Anand, V., J. Tyler Leverty, and K. Wunder, 2020, Paying for Expertise: The Effect of Experience on Insurance Demand, Journal of Risk and Insurance, 1-30.Andreou, C. K., P. C. Andreou, and N. Lambertides, 2021, Financial Distress Risk and Stock Price Crashes, Journal of Corporate Finance, 67: 101870.Andreou, P. C., Philip, D., and P. Robejsek, 2016, Bank Liquidity Creation and Risk‐taking: Does Managerial Ability Matter?. Journal of Business Finance & Accounting, 43(1-2): 226-259.Baranoff, E., and T. Sager, 2003, The Relations among Organizational and Distribution Forms and Capital and Asset Risk Structures in the Life Insurance Industry, Journal of Risk and Insurance, 70(3): 375-400.Berger, A. N., and C. H. Bouwman, 2013, How Does Capital Affect Bank Performance During Financial Crises?, Journal of Financial Economics, 109(1): 146-176.Berger, A. N., J. D. Cummins, M. A. Weiss, and H. Zi, 2000, Conglomeration versus Strategic Focus: Evidence from the Insurance Industry, Journal of Financial Intermediation, 9(4): 323-362.Berry‐Stölzle, T. R., R. E. Hoyt, and S. Wende, 2013, Capital Market Development, Competition, Property Rights, and the Value of Insurer Product‐line Diversification: A Cross‐country Analysis, Journal of Risk and Insurance, 80(2): 423-459.Berry‐Stölzle, T. R., A. P. Liebenberg, J. S. Ruhland, and D. W. Sommer, 2012, Determinants of Corporate Diversification: Evidence from the Property–liability Insurance Industry, Journal of Risk and Insurance, 79(2): 381-413.Best’s Review, 2000, Higginbotham Goes Online in Merger With Insure Zone, 101(2): 152.Bharath, S. T., S. Dahiya, A. Saunders, and A. Srinivasan, 2011, Lending Relationships and Loan Contract Terms, The Review of Financial Studies, 24(4): 1141-1203.Bolton, P., and D. S. Scharfstein, 1990, A Theory of Predation Based on Agency Problems in Financial Contracting, American Economic Review, 80(1): 93–106.Boot, A. W., and A. Schmeits, 2000, Market Discipline and Incentive Problems in Conglomerate Firms with Applications to Banking, Journal of Financial Intermediation, 9(3): 240-273.Boyer, M. M., & T. Dupont-Courtade, 2015, The Structure of Reinsurance Contracts, The Geneva Papers on Risk and Insurance-Issues and Practice, 40(3): 474-492.Browne, M. J., and T. Zhou-Richter, 2014, Lemons or Cherries? Asymmetric Information in the German Private Long-term Care Insurance Market, The Geneva Papers, 39: 603-624.Campello, M., C. Lin, Y. Ma, and H. Zou, 2011, The Real and Financial Implications of Corporate Hedging, The Journal of Finance, 66(5): 1615-1647.Caporale, G. M., M. Cerrato, and X. Zhang, 2017, Analysing the Determinants of Insolvency Risk for General Insurance Firms in the UK, Journal of Banking & Finance, 84: 107-122.Chang, V. Y., 2019, Does Reinsurance Purchasing Enhance Insurers’ Competitiveness? Evidence from the US Property–liability Insurance Industry, The Geneva Papers on Risk and Insurance-Issues and Practice, 44(4): 595-623.Che, X., 2019, Insurance Market Competition and Reserve Management, Journal of Insurance Issues, 42(2): 1-38.Che, X., S. G. Fier, and A. P. Liebenberg, 2019, The Effect of Predation Risk on Cash Holdings: Empirical Evidence from the US Property‐liability Insurance Industry, Risk Management and Insurance Review, 22(3): 329-358.Che, X., and A. P. Liebenberg, 2017, Effects of Business Diversification on Asset Risk-taking: Evidence from the US Property-liability Insurance Industry, Journal of Banking & Finance, 77: 122-136.Chen J. H., S. C. Chang, and Y. M. Shiu, 2021, Risk-based Capital Regime Adoption and Underwriting Performance: Evidence from the Property-Casualty Insurance Industry in Taiwan, Review of Securities and Futures Markets, 33(3): 83-119.Chen, J. H., and Y. M. Shiu, 2020a, Does Asymmetric Information Exist in the Reinsurance Markets of Taiwan? Applying Quantile Regression and Natural-Experiment Method, Management Review, 39(1): 123-140.Chen, J. H., and Y. M. Shiu, 2020b, Does Asymmetric Information Exist in Taiwanese Fire Reinsurance Markets? Taiwan Insurance Review, 36(1): 1-26.Chiang, C. C., 2020, Does Having an Affiliated Bank Improve Life Insurer Performance in a Turbulent Market?, Journal of Risk and Insurance, 87(3): 627-664.Cohen, A., 2012, Asymmetric Learning in Repeated Contracting: An Empirical Study, Review of Economics and Statistics, 94(2): 419-432.Cohen, A., and P. Siegelman, 2010, Testing for Adverse Selection in Insurance Markets, Journal of Risk and Insurance, 77(1): 39-84.Cole, C. R., and K. A. McCullough, 2006, A Reexamination of the Corporate Demand for Reinsurance, Journal of Risk and Insurance, 73(1): 169-192.Cummins, J. D., M. A. Weiss, X. Xie, and H. Zi, 2010, Economies of Scope in Financial Services: A DEA Efficiency Analysis of the US insurance Industry, Journal of Banking & Finance, 34(7): 1525-1539.Cummins, J. D., M. A. Weiss, and H. Zi, 2003, Economies of Scope in Financial Services: A Dea Bootstrapping Analysis of the U.S. Insurance Industry, Working paper, Wharton Financial Institutions Center.Cutler, D. M., 1994, Market Failure in Small Group Health Insurance, NBER Working Paper No. 4879.de Garidel-Thoron, T., 2005, Welfare-improving Asymmetric Information in Dynamic Insurance Markets, Journal of Political Economy, 113: 121–150.De Haan, L., and J. Kakes, 2010, Are Non-risk Based Capital Requirements for Insurance Companies Binding?, Journal of Banking and Finance, 34, 1618–1627.Dionne, G., and C. Rothschild, 2014, Economic Effects of Risk Classification Bans, The Geneva Risk and Insurance Review, 39(2): 184-221.Doherty, N. A., and J. Lamm‐Tennant, 2009, Lessons from the Financial Crisis on Risk and Capital Management: The Case of Insurance Companies, Journal of Applied Corporate Finance, 21(4): 52-59.Doherty, N., and K. Smetters, 2005, Moral Hazard in Reinsurance Markets, Journal of Risk and Insurance, 72(3): 375-391.Doherty, N. A., and S. M. Tinic, 1981, Reinsurance under Conditions of Capital Market Equilibrium: A Note, Journal of Finance, 36: 949–953.Donker, H., A. Ng, and P. Shao, 2020, Borrower Distress and the Efficiency of Relationship Banking, Journal of Banking & Finance, 112: 105275.Elango, B., Y. L. Ma, and N. Pope, 2008, An Investigation into the Diversification–performance Relationship in the US Property–liability Insurance Industry, Journal of Risk and Insurance, 75(3): 567-591.Eling, M., R. Jia, and Y. Yao, 2017, Between‐Group Adverse Selection: Evidence from Group Critical Illness Insurance, Journal of Risk and Insurance, 84(2): 771-809.Eling, M., and M. Luhnen, 2010, Efficiency in the International Insurance Industry: A Cross-country Comparison, Journal of Banking & Finance, 34(7): 1497–1509.Eling, M., and S. D. Marek, 2014, Corporate Governance and Risk Taking: Evidence from the UK and German Insurance Markets, Journal of Risk and Insurance, 81(3): 653-682.Fan, J. P., J. Huang, F. Oberholzer-Gee, and M. Zhao, 2020, Bureaucrats as Managers and Their Roles in Corporate Diversification, Journal of Corporate Finance, 63, 101171.Finkelstein, A., and J. Poterba, 2004, Adverse Selection in Insurance Markets: Policyholder Evidence from the UK Annuity Market, Journal of Political Economy, 112(1): 183-208.Frank, M. Z., and V. K. Goyal, 2009, Capital Structure Decisions: Which Factors are Reliably Important?, Financial Management, 38(1): 1-37.Fresard, L., 2010, Financial Strength and Product Market Behavior: The Real Effects of Corporate Cash Holdings, Journal of Finance, 65(3): 1097-1122.Froot, K. A., and P. G. O’Connell, 2008, On the Pricing of Intermediated Risks: Theory and Application to Catastrophe Reinsurance, Journal of Banking & Finance, 32(1): 69-85.Gao, F., M. R. Powers, and J. Wang, 2017, Decomposing Asymmetric Information in China`s Automobile Insurance Market, Journal of Risk and Insurance, 84(4): 1269-1293.Garven, J. R., J. I. Hilliard, and M. F. Grace, 2014, Adverse Selection in Reinsurance Markets, The Geneva Risk and Insurance Review, 39(2): 222-253.Géczy, C., B. A. Minton, and C. Schrand, 1997, Why Firms Use Currency Derivatives, Journal of Finance, 52(4): 1323-1354.Giroud, X., and H. M. Mueller, 2010, Does Corporate Governance Matter in Competitive Industries? Journal of Financial Economics, 95(3): 312–331.Gravelle, H., 1994, Remunerating Information Providers: Commissions Versus Fees in Life Insurance, Journal of Risk and Insurance, 425-457.He, D., 2009, The Life Insurance Market: Asymmetric Information Revisited, Journal of Public Economics, 93(9-10): 1090-1097.He, J., R. Rejesus, X. Zheng, and J. Yorobe Jr, 2018, Advantageous Selection in Crop Insurance: Theory and Evidence, Journal of Agricultural Economics, 69(3): 646-668.Hicks, J. R. 1935, Annual Survey of Economic Theory: The Theory of Monopoly, Econometrica, 3(1): 1–20.Hoerger, T. J., F. A. Sloan, M. Hassan, 1990, Loss Volatility, Bankruptcy, and the Demand for Reinsurance, Journal of Risk and Uncertainty, 53, 221–245.Hoyt, R. E., and J. S. Trieschmann, 1991, Risk/return Relationships for Life-health, Property-liability, and Diversified insurers, Journal of Risk and Insurance, 322-330.Hsu, W. Y., Y. Huang, and G. Lai, 2015, Corporate Governance and Cash Holdings: Evidence from the US property–liability Insurance Industry, Journal of Risk and Insurance, 82(3): 715-748.Jean-Baptiste, E. L., and A. M. Santomero, 2000, The Design of Private Reinsurance Contracts, Journal of Financial Intermediation, 9(3): 274-297.Jensen, M. C., and W. H. Meckling, 1976, Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure, Journal of Financial Economics, 3(4): 305-360.Jones, G. R., and C. W. Hill, 1988, Transaction Cost Analysis of Strategy‐structure Choice, Strategic Management Journal, 9(2): 159-172.Kennedy, P., 1998, A Guide to Econometrics. fourth ed. Blackwell Publishers.King, A. A., and C. L. Tucci, 2002, Incumbent Entry into New Market Niches: The Role of Experience and Managerial Choice in the Creation of Dynamic Capabilities, Management Science, 48(2): 171-186.Kofman, P., and G. P. Nini, 2013, Do Insurance Companies Possess an Informational Monopoly? Empirical Evidence from Auto Insurance, Journal of Risk and Insurance, 80(4): 1001-1026.Kysucky, V., and L. Norden, 2016, The Benefits of Relationship Lending in a Cross-country Context: A Meta-analysis, Management Science, 62(1): 90-110.Kunreuther, H., and M. Pauly, 1985, Markets Equilibrium with Private Knowledge: An Example, Journal of Public Economics, 26: 269–288.Lang, L. H. P., and R. M. Stulz, 1994, Tobin`s Q, Corporate Diversification, and Firm Performance, Journal of Political Economy, 102(6): 1248–1280.Liebenberg, A. P., and D. W. Sommer, 2008, Effects of Corporate Diversification: Evidence from the Property–liability Insurance Industry, Journal of Risk and Insurance, 75(4): 893-919.Lin, C., M. S. Officer, and H. Zou, 2011, Directors` and Officers` Liability Insurance and Acquisition Outcomes, Journal of Financial Economics, 102(3): 507-525.Lin, Y., J. Yu, and M. O. Peterson, 2015, Reinsurance Networks and Their Impact on Reinsurance Decisions: Theory and Empirical Evidence, Journal of Risk and Insurance, 82(3): 531-569.Liu, H. H., Y. M. Shiu, and T. C. Liu, 2016, Reinsurance and Liquidity: Evidence from the United Kingdom General Insurance Industry, The Geneva Papers on Risk and Insurance-Issues and Practice, 41(2): 307-324.MacKay, P., and G. M. Phillips, 2005, How Does Industry Affect Firm Financial Structure?, The Review of Financial Studies, 18(4): 1433-1466.Mankai, S., and A. Belgacem, 2016, Interactions between Risk Taking, Capital, and Reinsurance for Property–liability Insurance Firms, Journal of Risk and Insurance, 83(4): 1007-1043.Marvel, H. P., 1982, Exclusive Dealing, The Journal of Law and Economics, 25(1): 1-25.Mayers, D., and C. W. Smith Jr, 1988, Ownership Structure across Lines of Property-Casualty Insurance, The Journal of Law and Economics, 31(2): 351-378.Mayers, D., and C. W. Smith Jr, 1994, Managerial Discretion, Regulation, and Stock Insurer Ownership Structure, Journal of Risk and Insurance, 638-655.Monheit, A. C., and B. S. Schone, 2004, How Has Small Group Market Reform Affected Employee Health Insurance Coverage? Journal of Public Economics, 88(1): 237-254.Morris, B. C., S. G. Fier, and A. P. Liebenberg, 2017, The Effect of Diversification Relatedness on Firm Performance, Journal of Insurance Issues, 125-158.Liebenberg, A. P., and D. W. Sommer, 2008, Effects of Corporate Diversification: Evidence from the Property–liability Insurance Industry, Journal of Risk and Insurance, 75(4): 893-919.Lin, Y., J. Yu, and M. O. Peterson, 2015, Reinsurance Networks and Their Impact on Reinsurance Decisions: Theory and Empirical Evidence, Journal of Risk and Insurance, 82(3): 531-569.Olivella, P., and M. Vera‐Hernández, 2013, Testing for Asymmetric Information in Private Health Insurance, The Economic Journal, 123(567): 96-130.Park, S. C., X. Xie, and P. Rui, 2019, The Sensitivity of Reinsurance Demand to Counterparty Risk: Evidence from the US Property–liability Insurance Industry, Journal of Risk and Insurance, 86(4): 915-946.Parlour, C. A., and G. Plantin, 2008, Loan Sales and Relationship Banking, Journal of Finance, 63: 1291-1314.Peng, L., and Z. Lian, 2020, Diversification and Efficiency of Life Insurers in China and India, The Geneva Papers on Risk and Insurance-Issues and Practice, 1-21.Plantin, G., 2006, Does Reinsurance Need Reinsurers?, Journal of Risk and Insurance, 73(1): 153-168.Pooser, D. M., and M. J. Browne, 2018, The Effects of Customer Satisfaction on Company Profitability: Evidence from the Property and Casualty Insurance Industry, Risk Management and Insurance Review, 21(2): 289-308.Pottier, S. W., and D. W. Sommer, 1997, Agency Theory and Life Insurer Ownership Structure, Journal of Risk and Insurance, 529-543.Powell, L. S., and D. W. Sommer, 2007, Internal Versus External Capital Markets in the Insurance Industry: The Role of Reinsurance, Journal of Financial Services Research, 31(2): 173-189.Rhoades, S. A., and R. D. Rutz, 1982, Market Power and Firm Risk—A Test of the “Quiet Life” hypothesis, Journal of Monetary Economics, 9(1): 73–85.Rothschild, M., and J. Stiglitz, 1976, Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information, The Quarterly Journal of Economics, 90(4): 629-649.Rumelt, R. P., 1974, Strategy, Structure, and Performance, Boston: Graduate School of Business, Harvard University.Savitha, B., S. Banerjee, and A. Shetty, 2019, Product Diversification versus Technical Efficiency of Conglomerate Life Microinsurance Companies: Evidence from India, The Geneva Papers on Risk and Insurance-Issues and Practice, 44(3): 527-547.Servaes, H., 1996, The Value of Diversification during the Conglomerate Merger Wave, The Journal of Finance, 51(4): 1201-1225.Sharpe, S. A., 1990, Asymmetric Information, Bank Lending, and Implicit Contracts: A Stylized Model of Customer Relationships, The Journal of Finance, 45(4): 1069-1087.Shi, P., and W. Zhang, 2016, A Test of Asymmetric Learning in Competitive Insurance with Partial Information Sharing, Journal of Risk and Insurance, 83(3): 557-578.Shim, J., 2011, Mergers & Acquisitions, Diversification and Performance in the US Property-liability Insurance Industry, Journal of Financial Services Research, 39(3): 119-144.Shim, J., 2017, An Investigation of Market Concentration and Financial Stability in Property–liability Insurance Industry, Journal of Risk and Insurance, 84(2): 567-597.Shiu, Y. M., 2011, Reinsurance and Capital Structure: Evidence from the United Kingdom Non‐life Insurance Industry, Journal of Risk and Insurance, 78(2): 475-494.Shiu, Y. M., 2016, Is Reinsurance a Substitute for or a Complement to Derivative Usage? Evidence from the UK Non-life insurance industry, The Geneva Papers on Risk and Insurance-Issues and Practice, 41(1): 161-178.Sharpe, S., 1990, Asymmetric Information, Bank Lending and Implicit Contracts: A Stylized Model of Customer Relationships, Journal of Finance, 45: 1069–1087.Smith, C. W., 1977, Alternative Methods for Raising Capital: Rights Versus Underwritten Offerings, Journal of Financial Economics, 5: 273-307.Sonnenholzner, M., S. Friese, and J. M. G. v. d. Schulenburg, 2009, Reinsurance Brokers and Advice Quality: Is There A Need for Regulation?, The Geneva Risk and Insurance Review, 34(1): 20-46.Spindler, M., 2015, Asymmetric Information in (Private) Accident Insurance, Economics Letters, 130: 85-88.Studenmund, A. H., 2001, Using Econometrics: A Practical Guide, NewYork: Addison Wesley Longman.Teece, D. J., 1980, Economies of Scope and the Scope of the Enterprise, Journal of Economic Behavior & Organization, 1(3): 223-247.Titman, S., and R. Wessels, 1988, The Determinants of Capital Structure Choice, Journal of Finance, 43: 1-19.Upreti, V., and M. Adams, 2015, The Strategic Role of Reinsurance in the United Kingdom’s (UK) Non-life Insurance Market, Journal of Banking & Finance, 61: 206-219.Veprauskaite, E., and M. B. Adams, 2018, Leverage and Reinsurance Effects on Loss Reserves in the United Kingdom’s Property–casualty Insurance Industry, Accounting and Business Research, 48(4): 373-399.Villalonga, B., 2004, Diversification Discount or Premium? New Evidence from the Business Information Tracking Series, Journal of Finance, 59(2): 479-506.Wang, K. C., J. L. Peng, Y. Y. Sun, and Y. C. Chang, 2011, The Asymmetric Information Problem in Taiwan`s Cancer Insurance Market, The Geneva Risk and Insurance Review, 36(2): 202-219.Wooldridge, J. M., 2016, Introductory Econometrics: A Modern Approach, 4th ed. Canada: South-Western Cengage Learning.Xie, X., C. Lee, and M. Eling, 2020, Cyber Insurance Offering and Performance: An Analysis of the US Cyber Insurance Market, The Geneva Papers on Risk and Insurance-Issues and Practice, 45(4): 690-736.Yan, Z., 2013, Testing for Moral Hazard in Reinsurance Markets, Managerial Finance, 39(8): 696-713.Yan, Z., and L. Hong, 2015, Testing for Asymmetric Information in Reinsurance Markets, The Geneva Papers on Risk and Insurance-Issues and Practice, 40(1): 29-46.Essay 3:Adam, T., S. Dasgupta, S. Titman, 2007, Financial Constraints, Competition, and Hedging in Industry Equilibrium, Journal of Finance, 62: 2445–2473.Adams, M., P. Hardwick, and H. Zou, 2008, Reinsurance and Corporate Taxation in the United Kingdom Life Insurance Industry, Journal of Banking & Finance, 32(1): 101-115.Altuntas, M., J. Garven, and J. Rauch, 2018, On the Corporate Demand for Insurance: Evidence from the Global Reinsurance Market, Risk Management and Insurance Review, 21(2): 211-242.Anand, V., J. Tyler Leverty, and K. Wunder, 2020, Paying for Expertise: The Effect ofExperience on Insurance Demand, Journal of Risk and Insurance, 1-30.Andreou, C. K., P. C. Andreou, and N. Lambertides, 2021, Financial Distress Risk and Stock Price Crashes, Journal of Corporate Finance, 67: 101870.Arellano, M., and S. Bond, 1991, Some Tests of Specification for Panel Data: Monte Carlo Evidence and An Application to Employment Equations, The Review of Economic Studies, 58(2): 277-297.Bharath, S. T., S. Dahiya, A. Saunders, and A. Srinivasan, 2011, Lending Relationships and Loan Contract Terms, The Review of Financial Studies, 24(4): 1141-1203.Berry‐Stölzle, T. R., A. P. Liebenberg, J. S. Ruhland, and D. W. Sommer, 2012, Determinants of Corporate Diversification: Evidence from the Property–liability Insurance Industry, Journal of Risk and Insurance, 79(2): 381-413.Blundell, R., and S. Bond, 1998, Initial Conditions and Moment Restrictions in Dynamic Panel Data Models, Journal of Econometrics, 87(1): 115-143.Boulding, W., and R. Staelin, 1990, Environment, Market Share, and Market Power, Management Science, 36(10): 1160–1177.Browne, M. J., L. Ju, and Y. Lei, 2012, Reinsurance Purchases, Contingent CommissionPayments and Insurer Reserve Estimation, The Geneva Papers on Risk and Insurance-Issues and Practice, 37(3): 452-466.Browne, M. J., and T. Zhou-Richter, 2014, Lemons or Cherries? Asymmetric Information in the German Private Long-term Care Insurance Market, The Geneva Papers, 39: 603-624.Campello, M., C. Lin, Y. Ma, H. Zou, 2011, The Real and Financial Implications of Corporate Hedging, Journal of Finance, 66: 1615–1647.Chang, V. Y., 2019, Does Reinsurance Purchasing Enhance Insurers’ Competitiveness? Evidence from the US Property–liability Insurance Industry, The Geneva Papers on Risk and Insurance-Issues and Practice, 44(4): 595-623.Chang, V. Y., and V. S. Jeng, 2016, The Relationship Among the Demand for Reinsurance, Liquidity, and Leverage in the US Property-Liability Insurance Industry, Taiwan Economic Review, 44(4): 543-576.Che, X., and A. P. Liebenberg, 2017, Effects of Business Diversification on Asset Risk-taking: Evidence from the US Property-liability Insurance Industry, Journal of Banking and Finance, 77: 122-136.Chen, Y., I. S. Hamwi, and T. Hudson, 2001, The Effect of Ceded Reinsurance on Solvency of Primary Insurers, International Advances in Economic Research, 7(1): 65-82.Chen, J. H., and Y. M. Shiu, 2020, Does Asymmetric Information Exist in the Reinsurance Markets of Taiwan? Applying Quantile Regression and Natural-Experiment Method, Management Review, 39, 123-140.Cohen, A., 2012, Asymmetric Learning in Repeated Contracting: An Empirical Study, Review of Economics and Statistics, 94(2): 419-432.Cohen, A., and P. Siegelman, 2010, Testing for Adverse Selection in Insurance Markets, Journal of Risk and Insurance, 77(1): 39-84.Cole, C. R., and K. A. McCullough, 2006, A Reexamination of the Corporate Demand for Reinsurance, Journal of Risk and Insurance, 73(1): 169-192.Cummins, J. D., G. Dionne, R. Gagné, and A. Nouira, 2021, The Costs and Benefits of Reinsurance, The Geneva Papers on Risk and Insurance-Issues and Practice, 46(2): 177-199.Cummins, J. D., R. D. Phillips, S. D. Smith, 2001, Derivatives and Corporate Risk Management: Participation and Volume Decisions in the Insurance Industry, Journal of Risk and Insurance, 51-91.Dahlby, B., and D. S. West, 1986, Price Dispersion in an Automobile Insurance Market, The Journal of Political Economy, 94(2): 418–438.Demsetz, H., 1973, Industry Structure, Market Rivalry, and Public Policy, Journal of Law & Economics, 16(1): 1–9.Doherty, N., and K. Smetters, 2005, Moral Hazard in Reinsurance Markets, Journal of Risk and Insurance, 72(3): 375-391.Doherty, N. A., S. M. Tinic, 1981, Reinsurance under Conditions of Capital Market Equilibrium: A Note, Journal of Finance, 36: 949–953.Donker, H., A. Ng, and P. Shao, 2020, Borrower Distress and the Efficiency of Relationship Banking, Journal of Banking & Finance, 112: 105275.Edeling, A., and A. Himme, 2018, When Does Market Share Matter? New Empirical Generalizations from a Meta-analysis of the Market Share–performance Relationship, Journal of Marketing, 82(3): 1-24.Eling, M., R. Jia, and Y. Yao, 2017, Between‐Group Adverse Selection: Evidence FromGroup Critical Illness Insurance, Journal of Risk and Insurance, 84(2): 771-809.Erickson, G. M., and S. A. Finkler, 1985, Determinants of Market Share for a Hospital’s Services, Medical Care, 23(8): 1003–1018.Farah, T., J. Li, Z. Li, and A. Shamsuddin, 2021, The Non-linear Effect of CSR on Firms’ Systematic Risk: International Evidence, Journal of International Financial Markets, Institutions and Money, 71, 101288.Finkelstein, A., and J. Poterba, 2004, Adverse Selection in Insurance Markets: Policyholder Evidence from the UK Annuity Market, Journal of Political Economy, 112(1): 183-208.Froot, K. A. 1999, The Financing of Catastrophe Risk. Chicago: University of Chicago Press.Froot, K. A., 2001, The Market for Catastrophe Risk: A Clinical Examination, Journal of Financial Economics, 60: 529-571.Froot, K. A., D. S. Scharfstein, J. C. Stein, 1993, Risk Management: Coordinating Corporate Investment and Financing Policies, Journal of Finance, 48: 1629–1658.Gale, B. T., 1972, Market Share and Rate of Return, Review of Economics and Statistics, 54(4): 412–423.Gao, F., M. R. Powers, and J. Wang, 2017, Decomposing Asymmetric Information in China`s Automobile Insurance Market, Journal of Risk and Insurance, 84(4): 1269-1293.Garven, J. R., J. I. Hilliard, and M. F. Grace, 2014, Adverse Selection in Reinsurance Markets, The Geneva Risk and Insurance Review, 39(2): 222-253.Garven, J. R. and R. D. MacMinn, 1993, The Underinvestment Problem, Bond Covenants and Insurance, Journal of Risk and Insurance, 60(4): 635–646.Gates, R., C. McDaniel, and K. Braunsberger, 2000, Modeling Consumer Health Plan Choice Behavior to Improve Customer Value and Health Plan Market Share, Journal of Business Research, 48(3): 247-257.Géczy, C., B. A. Minton, and C. Schrand, 1997, Why Firms Use Currency Derivatives, Journal of Finance, 52(4): 1323-1354.Gravelle, H., 1994, Remunerating Information Providers: Commissions Versus Fees in Life Insurance, Journal of Risk and Insurance, 425-457.Haans, R. F., C. Pieters, and Z. L. He, 2016, Thinking about U: Theorizing and Testing U‐and Inverted U‐shaped Relationships in Strategy Research, Strategic Management Journal, 37(7): 1177-1195.Harris, M., A. Raviv, 1991. The Theory of Capital Structure, Journal of Finance, 46: 297–355.He, D., 2009, The Life Insurance Market: Asymmetric Information Revisited, Journal of Public Economics, 93(9-10): 1090-1097.He, J., R. Rejesus, X. Zheng, and J. Yorobe Jr, 2018, Advantageous Selection in Crop Insurance: Theory and Evidence, Journal of Agricultural Economics, 69(3): 646-668.Hellofs, L., and R. Jacobson, 1999, Market Share and Customers’ Perception of Quality: When Can Firms Grow Their Way to Higher Versus Lower Quality?, Journal of Marketing, 63(1): 16–25.Hill, K. E., M. D. Hill, and G. W. Kelly, 2020, Do Market Share and Demand Uncertainty Influence the Relation Between Advertising Expenditures and Shareholder Value?, Journal of Business Research, 115: 61-69.Ho, C. L., 2017, CEO Turnover and Reinsurance Demand in the US Property Casualty Insurance Industry, NTU Management Review, 27(2S): 245-288.Hsu, W. Y., Y. Huang, and G. Lai, 2015, Corporate Governance and Cash Holdings: Evidence from the US property–liability Insurance Industry, Journal of Risk and Insurance, 82(3): 715-748.Jacobson, R., and D. A. Aaker, 1985, Is Market Share All That It’s Cracked Up to Be? Journal of Marketing, 49(4): 11–22.Jean-Baptiste, E. L., and A. M. Santomero, 2000, The Design of Private Reinsurance Contracts, Journal of Financial Intermediation, 9(3): 274-297.Kelly, M., A. Klefner, and D. Leadbetter, 2012, Structure, Principles and Effectiveness of Insurance Regulation in the 21st century: Insights from Canada, The Geneva Papers on Risk and Insurance-Issues and Practice, 37 (1): 155–174.Kennedy, P., 1998. A Guide to Econometrics. fourth ed. Blackwell Publishers.Khorana, A., and H. Servaes, 2012, What Drives Market Share in the Mutual Fund Industry? Review of Finance, 16 (1): 81–113.Kofman, P., and G. P. Nini, 2013, Do Insurance Companies Possess an Informational Monopoly? Empirical Evidence from Auto Insurance, Journal of Risk and Insurance, 80(4): 1001-1026.Kysucky, V., and L. Norden, 2016, The Benefits of Relationship Lending in a Cross-country Context: A Meta-analysis, Management Science, 62(1): 90-110.Lee, H. H., and C. Y. Lee, 2012, An Analysis of Reinsurance and Firm Performance: Evidence from the Taiwan Property-liability Insurance Industry, The Geneva Papers on Risk and Insurance-Issues and Practice, 37(3): 467-484.Lin, C., M. S. Officer, and H. Zou, 2011, Directors` and Officers` Liability Insurance and Acquisition Outcomes, Journal of Financial Economics, 102(3): 507-525.Lind J. T., H. Mehlum, 2010, With or Without U? The Appropriate Test for a U-shaped Relationship, Oxford Bulletin of Economics and Statistics, 72(1): 109–118.Mankai, S., and A. Belgacem, 2016, Interactions between Risk Taking, Capital, and Reinsurance for Property–liability Insurance Firms, Journal of Risk and Insurance, 83(4): 1007-1043.Marvel, H. P., 1982, Exclusive Dealing, The Journal of Law and Economics, 25(1): 1-25.Morris, B. C., S. G. Fier, and A. P. Liebenberg, 2017, The Effect of Diversification Relatedness on Firm Performance, Journal of Insurance Issues, 125-158.Niehaus, G., and S. Mann, 1992, The Trading of Underwriting Risk: An Analysis of Insurance Futures Contracts and Reinsurance, The Journal of Risk & Insurance, 59(4): 601-627.Olivella, P., and M. Vera‐Hernández, 2013, Testing for Asymmetric Information in Private Health Insurance, The Economic Journal, 123(567): 96-130.O’Regan, N., 2002, Market Share: the Conduit to Future Success?, European Business Review, 14(4): 287-293.Park, C. S., and V. Srinivasan, 1994, A Survey-based Method for Measuring and Understanding Brand Equity and Its Extendibility, Journal of Marketing Research, 31(2): 271-288.Parente, R., B. P. Choi, A. H. L. Slangen, and S. Ketkar, 2010, Distribution System Choice in a Service Industry: An Analysis of International Insurance Firms Operating in the United States, Journal of International Management, 16(3): 275-287.Pottier, S. W., and D. W. Sommer, 1997, Agency Theory and Life Insurer Ownership Structure, Journal of Risk and Insurance, 529-543.Regan, L. 1999, Expense Ratios across Insurance Distribution Systems: An Analysis by Line of Business, Risk Management and Insurance Review, 2(2): 44–59.Rothschild, M., and J. Stiglitz, 1976, Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information, The Quarterly Journal of Economics, 90(4): 629-649.Sandvik, I. L., and K. Sandvik, 2003, The Impact of Market Orientation on Product Innovativeness and Business Performance, International Journal of Research in Marketing, 20(4): 355-376.Scordis, N. A., and P. Steinorth, 2012, Value from Hedging Risk with Reinsurance, Journal of Insurance Issues, 210-231.Seog, S. H., 2006, Strategic Demand for Insurance, Journal of Risk and Insurance, 73(2): 279–295.Sheikh, S., A. M. Syed, and S. S. A. Shah, 2018, Corporate Reinsurance Utilisation and Capital Structure: Evidence from Pakistan Insurance Industry, The Geneva Papers on Risk and Insurance-Issues and Practice, 43(2): 300-334.Shi, P., and W. Zhang, 2016, A Test of Asymmetric Learning in Competitive Insurance with Partial Information Sharing, Journal of Risk and Insurance, 83(3): 557-578.Shiu, Y. M., 2011, Reinsurance and Capital Structure: Evidence from the United Kingdom Non‐life Insurance Industry, Journal of Risk and Insurance, 78(2): 475-494.Shiu, Y. M., and C. Y. Hsiao, 2014, The Effect of Loss Ratio on the Use of Reinsurance, Academia Economic Papers, 42(3): 435-483.Shiu, Y. M., and B. F. Huang, 2015, Effects of Risk-based Capital on Reinsurance Use: Evidence from the Taiwan Non-life Insurance Industry, Academia Economic Papers, 43(3): 381-411.Shiu, Y. M., 2016, Is Reinsurance a Substitute for or a Complement to Derivative Usage? Evidence from the UK Non-Life Insurance Industry, The Geneva Papers on Risk and Insurance-Issues and Practice, 41(1): 161-178.Shiu, Y. M., 2020, How Does Reinsurance and Derivatives Usage Affect Financial Performance? Evidence from the UK Non-life Insurance Industry, Economic Modelling, 88: 376-385.Shi, P., and W. Zhang, 2016, A Test of Asymmetric Learning in Competitive Insurance with Partial Information Sharing, Journal of Risk and Insurance, 83(3): 557-578.Shortridge, R. T., and S. M. Avila, 2004, The Impact of Institutional Ownership on the Reinsurance Decision, Risk Management and Insurance Review, 7(2): 93-106.Sonnenholzner, M., S. Friese, and J. M. G. v. d. Schulenburg, 2009, Reinsurance Brokers and Advice Quality: Is There A Need for Regulation?, The Geneva Risk and Insurance Review, 34(1): 20-46.Spindler, M., 2015, Asymmetric Information in (Private) Accident Insurance, Economics Letters, 130: 85-88.Studenmund, A. H., 2001, Using Econometrics: A Practical Guide, NewYork: Addison Wesley Longman.Upreti, V., and M. Adams, 2015, The Strategic Role of Reinsurance in the UnitedKingdom’s (UK) Non-life Insurance Market, Journal of Banking & Finance, 61: 206-219.Upreti, V., M. Adams, and Y. Jia, 2021, Risk Management and the Cost of Equity: Evidence from the United Kingdom’s Non-life Insurance Market, The European Journal of Finance, 1-20.Veprauskaite, E., and M. B. Adams, 2018, Leverage and Reinsurance Effects on Loss Reserves in the United Kingdom’s Property-casualty Insurance Industry, Accounting and Business Research, 48(4): 373-399.Wang, J. L., V. Y. Chang, G. C. Lai, and L. Y. Tzeng, 2008, Demutualization and Demand for Reinsurance, The Geneva Papers on Risk and Insurance-Issues and Practice, 33(3): 566-584.Wang, K. C., J. L. Peng, Y. Y. Sun, and Y. C. Chang, 2011, The Asymmetric Information Problem in Taiwan`s Cancer Insurance Market, The Geneva Risk and Insurance Review, 36(2): 202-219.Weiss, D. L. 1968, Determinants of Market Share, Journal of Marketing Research, 5: 290–295.Wooldridge, J. M., 2016, Introductory Econometrics: A Modern Approach, 4th ed. Canada: South-Western Cengage Learning.Yan, Z., 2013, Testing for Moral Hazard in Reinsurance Markets, Managerial Finance, 39(8): 696-713.Yan, Z., and L. Hong, 2015, Testing for Asymmetric Information in Reinsurance Markets, The Geneva Papers on Risk and Insurance-Issues and Practice, 40(1): 29-46.Yanase, N., and P. Limpaphayom, 2017, Organization Structure and Corporate Demand for Reinsurance: The Case of the Japanese Keiretsu, Journal of Risk and Insurance, 84(2): 599-629.Zanjani, G., 2002, Pricing and Capital Allocation in Catastrophe Insurance, Journal of Financial Economics, 65(2): 283-305. 描述 博士
國立政治大學
風險管理與保險學系
102358501資料來源 http://thesis.lib.nccu.edu.tw/record/#G0102358501 資料類型 thesis dc.contributor.advisor 許永明 zh_TW dc.contributor.advisor Shiu, Yung-Ming en_US dc.contributor.author (Authors) 陳瑞祥 zh_TW dc.contributor.author (Authors) Chen, Juei-Hsiang en_US dc.creator (作者) 陳瑞祥 zh_TW dc.creator (作者) Chen, Juei-Hsiang en_US dc.date (日期) 2021 en_US dc.date.accessioned 10-Feb-2022 12:55:32 (UTC+8) - dc.date.available 10-Feb-2022 12:55:32 (UTC+8) - dc.date.issued (上傳時間) 10-Feb-2022 12:55:32 (UTC+8) - dc.identifier (Other Identifiers) G0102358501 en_US dc.identifier.uri (URI) http://nccur.lib.nccu.edu.tw/handle/140.119/138891 - dc.description (描述) 博士 zh_TW dc.description (描述) 國立政治大學 zh_TW dc.description (描述) 風險管理與保險學系 zh_TW dc.description (描述) 102358501 zh_TW dc.description.abstract (摘要) 在實務與文獻上，概念上皆認為分保公司與再保險人維持愈久的交易關係，有助於提升再保險契約或市場交易的效率。然而，關於再保險交易關係如何影響分保公司的實證研究，非常地稀少。至今僅有幾篇學術研究以理論方式推論或者利用實際資料檢定當再保險交易關係期間愈長時，是否對於分保公司的財務績效、再保險使用程度與破產風險造成影響。因此，當再保險交易關係期間愈長，是否會對分保公司的其他面向營運績效造成影響，是目前學術上尚未探討並且是值得探討的重要問題。不對稱學習(Asymmetric learning)是再保險交易關係對分保公司造成影響的主要機制，即再保險契約訂立之初，再保險契約交易雙方存在資訊不對稱，此時再保險公司並未清楚分保業務真實的風險程度，因此無法訂立公允的再保險價格。隨著再保險交易關係期間愈來愈久，再保險公司持續地獲得與累積其承保業務的理賠資訊，愈來愈清楚業務的風險性質，並將其資訊用於風險分類與再保險定價。因此，當再保險交易關係期間短時，再保險資訊不對稱程度愈高；然而，當交易關係期間長時，資訊不對稱程度愈低。換句話說，在不同再保險交易關係期間下，分保公司與再保險公司同時面臨不同程度的資訊不對稱現象，因此分保公司面臨不同的誘因並進一步做出對本身有利的決策，進而造成不同面向的影響效果。除此之外，文獻上捕捉再保險交易關係的指標也稀少，目前文獻發展的指標僅捕捉時間面向的關係，然而，在衡量再保險交易關係時，也必須將再保險交易的金額多寡納入考量，以避免在計算關係指標時納入太多交易金額太少的再保險交易，進而無法捕捉重要的再保險交易關係。因此，本文藉由考量過去五年累積分保保費金額的方式進一步捕捉各種重要性程度的再保險交易關係，即創造同時捕捉時間與交易金額面向的衡量再保險交易關係的指標。本博士論文由三篇探討再保險交易關係如何影響美國產險業分保公司不同面向的績效所組成，概念上，本論文想要回答以下三個問題，即分保公司的核保利潤、業務多角化與市佔率是否會隨著再保險交易關係期間的增長而隨之變動。換句話說，探討承保活動、風險管理策略與策略績效是否與再保險交易關係有相關。第一篇文章探討當再保險交易關係期間愈長時，分保公司的損失率、綜合率與核保利潤如何受到影響。藉由非線性變數的配置，一階段系統和差分動差法的迴歸模型估計，實證結果顯示，再保險交易關係和損失率與綜合率皆呈現倒U型關係，再保險交易關係和核保利潤呈現U型的關係。再保險交易關係短的時候，損失率和綜合率會隨著再保險交易關係的延長而增加，核保利潤則會隨之降低。當再保險交易關係久時，損失率和綜合率皆會隨著再保險交易關係的延長而降低，核保利潤則會隨之增加。因此，本文提出實證證據支持不對稱學習假說。第二篇文章檢視再保險交易關係如何影響分保公司的業務多角化程度，並且探討何種因素調節再保險交易關係與多角化程度的相關性。利用一般最小平方法與隨機效果Tobit模型估計，實證結果顯示，當再保險交易的關係持續時，分保公司的商品多角化程度會愈高，也發現公司規模將減緩上述再保險交易關係與多角化程度相關性。因此，本文提出實證證據支持不對稱學習假說與真實服務假說。第三篇文章則額外考量到市場上同時競爭的保險公司，探討再保險交易關係如何影響分保公司的市占率。藉由非線性變數的配置，一階段系統和差分動差法模型的估計，實證結果顯示，再保險交易關係與市占率呈現倒U型關係。因此，本文提供支持不對稱學習假說的證據。因此，本博士論文提供較完整的證據，回答文獻和實務上尚未回答的問題，即維持愈長期的再保險交易關係，會影響到分保公司哪些面向？再保險交易關係造成的影響效果，是否會隨著累積的交易關係年數而改變？本論文的實證結果可呼應再保險市場依賴長期交易關係的觀點，並且可進一步給實務人士、學術研究者、監理官和要保人等相關的利害關係人提供參考，以供進一步的決策依據。 zh_TW dc.description.abstract (摘要) It is well known in practice and in academic research that the efficiency of reinsurance transaction is on the long-term transaction relationship basis. However, how reinsurance relationship has an influence on cedants is an underexplored issue in academic research. Specifically, only few studies derive, theoretically, and examine, empirically, the effects of the tenure of insurer-reinsurer relationship on financial performance, reinsurance usage, and bankruptcy costs of cedants. The questions left to be answered in current reinsurance relationship literature are what other dimensions of cedants could be influenced by the reinsurance relation’s duration.The underlying mechanism of reinsurance relationship is learning over time, called asymmetric learning phenomenon. Specifically, reinsurers could gradually learn the risk of ceded business over time. In addition, the measure of capturing the reinsurance relationship is scarce in recent reinsurance relationship studies. Thus, we also improve such measures by taking the amount of reinsurance premium ceded in the past 5 years into account to capture various level of importance of reinsurance relationship. That is, we construct the reinsurance relationship measure simultaneously considering time and transaction amount dimensions.Therefore, in this thesis, we present three essays on the effects of the tenure of insurer-reinsure relationship in US property-casualty insurance industry. Conceptually, this thesis intends to answer the questions of how underwriting profitability (underwriting activities), product diversification (risk management strategies), and market share (strategic performance) are affected with the increase of the tenure of insurer-reinsurer relationship.The first essay investigates how the tenure of insurer-reinsurer relationship affects underwriting profitability, including loss ratio and combined ratio, of cedants. The results document that the tenure of insurer-reinsurer relationship is inverted U-shaped related with loss ratio and combined ratio, respectively. In addition, a U-shaped relationship between the tenure of insurer-reinsurer relationship and underwriting profitability is found. The results are consistent with asymmetric learning hypothesis.The second essay empirically scrutinizes the effect of reinsurance relationship’s tenure on product diversification. The results show that cedants tend to diversify more with the increase of the relation’s duration. In addition, we also find that such effect is mitigated as the firm size increases. The results are consistent with asymmetric learning hypothesis and real service hypothesis.The third essay, considering other rivals in insurance markets, empirically investigates the effect of the tenure of insurer-reinsurer relationship on market share. The result documents that such tenure is inverted U-shaped related with market share. The results are also consistent with asymmetric learning hypothesis.Overall, the implication of this PhD dissertation is that maintaining longer relationship with incumbent reinsurers is beneficial for cedants and various stakeholders, especially for those with long reinsurance relationship. en_US dc.description.tableofcontents ContentsEssay 1: The Effect of the Tenure of Insurer-reinsurer Relationship on Insurer’s Underwriting Profitability: Evidence from the US Property-casualty Insurance Industry12Abstract 121. Introduction 132. Literature Review and Hypothesis Testing 182.1 Literature Review 182.2 Hypothesis Development 213. Data, Variable Development, and Empirical Models 283.1 Data 283.2 Variables 293.2.1 Dependent variable 293.2.2 Independent variable 303.3 Regression models 364. Empirical results 374.1 Summary statistics and Univariate analysis 374.2 Information asymmetry testing in reinsurance contracting behavior……..404.3 Multivariate analysis 424.4 Reverse causality testing 455. Conclusions 46Reference 48Essay 2: The Effects of the Tenure of Insurer-Reinsurer Relationship on Product Diversification: Evidence from the US Property-casualty Insurance Industry 80Abstract 801. Introduction 812. Literature Review and Hypothesis Development 852.1 Literature Review 862.1.1 Information asymmetry 862.1.2 Asymmetric learning 872.1.3 Product Diversification 882.2 Hypothesis 903. Data, Variables, and Methodology 953.1 Sample selection 963.2 Variables………………………………………………………………….963.2.1 Dependent variable…………………………………………………..973.2.2 Main independent variables……………...…………………………..973.2.3 Control variables…………………………………………………...1003.3 Regression model………………………………………….....................1024. Empirical Results 1034.1 Univariate analysis 1034.2 Multivariate analysis 1054.3 Reserve causality testing 1075. Robust analysis 1076. Conclusion Remarks 108Reference 109Essay 3: The Effects of the Tenure of Insurer-reinsurer Relationship on Insurer’s Market Share: Evidence from the US Property-casualty Insurance Industry……………………………………………………………………………………130Abstract……………………………………………………………………….. 1301. Introduction………………………………………………………………….1312. Literature Review and Hypothesis Development…………………………...1362.1 Literature Review…………………………………………………….….1362.1.1 Reinsurance……………………………………………………..…..1362.1.2 Information asymmetry……………………………………………..1372.2 Hypothesis Development………………………………………………..1393. Data, Variables, and Regression models…………………………………….1443.1 Data……………………………………………………………………...1443.2 Variables………………………………………………………………... 1443.2.1 Dependent variable…………………………………………………1453.2.2 Main independent variable………………………………………….1453.2.3 Control variables……………………………………………………1483.3 Regression models ……………………………………………………...1514. Empirical results …………………………………………………………….1524.1 Univariate analysis………………………………………………………1524.2 Multivariate analysis…………………………………………………….1535. Reserve causality testing………………………………………………….…1566. Conclusions………………………………………………………………….156Reference………………………………………………………………………157Appendix…………………………………………………………………………... 183FiguresEssay 1Figure 1: The (inverted) U-shaped relationships between the relation’s duration and loss ratio, combined ratio, and underwriting profitability…………………………….79Essay 3Figure 1: The effects of reinsurance sustainability (Reins_Sus_total) on market share 182TablesEssay 1:Table 1: Variable names and definitions……………………………………………56Table 2: Descriptive analysis……………………………………………………….58Table 3: Pearson correlation matrix………………………………………………..60Table 4: Tests of information asymmetry…………………………………………..62Table 5: Effects of reinsurance sustainability on loss ratio by using one-step GMM-system model……………………………………………………………………63Table 6: Effects of reinsurance sustainability on loss ratio by using one-step GMM-difference model………………………………………………………………...65Table 7: Effects of reinsurance sustainability on combined ratio by using one-step GMM-system model……………………………………………….....................67Table 8: Effects of reinsurance sustainability on combined ratio by using one-step GMM-difference model 69Table 9: Effects of reinsurance sustainability on underwriting profitability by using one-step GMM-system model 71Table 10: Effects of reinsurance sustainability on underwriting profitability by using one-step GMM-difference model 73Table 11: Reverse causality testing 75Essay 2:Table 1: Variable names and definitions 119Table 2: Descriptive analysis 121Table 3: Pearson correlation matrix 122Table 4: Effects of the tenure of insurer-reinsurer relationship (Reins_Sus_total) on product diversification 124Table 5: Effects of the tenure of insurer-reinsurer relationship (Reins_Sus_p25) on product diversification 125Table 6: Effects of the tenure of insurer-reinsurer relationship (Reins_Sus_p50) on product diversification 126Table 7: Effects of the tenure of insurer-reinsurer relationship (Reins_Sus_p75) on product diversification 127Table 8: Reverse causality testing 128Table 9: Robust testing 129Essay 3:Table 1: Variable names and definitions………………………………………….166Table 2: Descriptive analysis……………………………………………………...169Table 3: Pearson correlation matrix 171Table 4: The effects of the tenure of insurer-reinsurer relationship (Reins_Sus_total) on market share 173Table 5: The effects of the tenure of insurer-reinsurer relationship (Reins_Sus_p25) on market share 175Table 6: The effects of the tenure of insurer-reinsurer relationship (Reins_Sus_p50) on market share 177Table 7: The effects of the tenure of insurer-reinsurer relationship (Reins_Sus_p75) on market share 179Table 8: Reverse causality testing 181Appendix:Table 1: 5-year rolling window for example 1 .183Table 2: Summary of example 1 185Table 3: 5-year rolling window for example 2. 186Table 4: Summary of example 2 188 zh_TW dc.format.extent 4929706 bytes - dc.format.mimetype application/pdf - dc.source.uri (資料來源) http://thesis.lib.nccu.edu.tw/record/#G0102358501 en_US dc.subject (關鍵詞) 再保險交易關係 zh_TW dc.subject (關鍵詞) 核保利潤 zh_TW dc.subject (關鍵詞) 業務多角化 zh_TW dc.subject (關鍵詞) 市佔率 zh_TW dc.subject (關鍵詞) 不對稱學習假說 zh_TW dc.subject (關鍵詞) The tenure of insurer-reinsurer relationship en_US dc.subject (關鍵詞) Underwriting profitability en_US dc.subject (關鍵詞) Product diversification en_US dc.subject (關鍵詞) Market share en_US dc.title (題名) 三篇保險公司和再保險公司長期關係的研究 zh_TW dc.title (題名) Three Essays on the Insurer-Reinsurer Relationship en_US dc.type (資料類型) thesis en_US dc.relation.reference (參考文獻) Essay 1:Adams, M., 1995, Balance Sheet Structure and the Managerial‐Discretion Hypothesis: An Exploratory Empirical Study of New Zealand Life Insurance Companies, Accounting & Finance, 35(1): 21-45.Adams, M., B. Burton, and P. Hardwick, 2003, The Determinants of Credit Ratings in the United Kingdom Insurance Industry, Journal of Business Finance & Accounting, 30(3‐4): 539-572.Adams, M., and W. Jiang, 2016, Do Outside Directors Influence the Financial Performance of Risk-trading Firms? Evidence from the United Kingdom (UK) Insurance Industry, Journal of Banking & Finance, 64: 36-51.Adams, M., V. Upreti, and J. Chen, 2019, Product-market Strategy and Underwriting Performance in the United Kingdom’s Property–casualty Insurance Market, The European Journal of Finance, 25(11): 1012-1031.Altuntas, M., J. Garven, and J. Rauch, 2018, On the Corporate Demand for Insurance: Evidence from the Global Reinsurance Market, Risk Management and Insurance Review, 21(2): 211-242.Anand, V., J. Tyler Leverty, and K. Wunder, 2020, Paying for Expertise: The Effect of Experience on Insurance Demand, Journal of Risk and Insurance, 1-30.Andreou, C. K., P. C. Andreou, and N. Lambertides, 2021, Financial Distress Risk and Stock Price Crashes, Journal of Corporate Finance, 67: 101870.Arellano, M., and S. Bond, 1991, Some Tests of Specification for Panel Data: Monte Carlo Evidence and An Application to Employment Equations, The Review of Economic Studies, 58(2): 277-297.Berry‐Stölzle, T. R., and P. Born, 2012, The Effect of Regulation on Insurance Pricing: the Case of Germany, Journal of Risk and Insurance, 79(1): 129-164.Berry‐Stölzle, T. R., A. P. Liebenberg, J. S. Ruhland, and D. W. Sommer, 2012, Determinants of Corporate Diversification: Evidence from the Property–liability Insurance Industry, Journal of Risk and Insurance, 79(2): 381-413.Bharath, S. T., S. Dahiya, A. Saunders, and A. Srinivasan, 2011, Lending Relationships and Loan Contract Terms, The Review of Financial Studies, 24(4): 1141-1203.Blundell, R., and S. Bond, 1998, Initial Conditions and Moment Restrictions in Dynamic Panel Data Models, Journal of Econometrics, 87(1): 115-143.Boot, A.W., 2000, Relationship Banking: What Do We Know?, Journal of Financial Intermediation, 9(1): 7–25.Boyer, M. M., E. Jacquier, and S. Van Norden, 2012, Are Underwriting Cycles Real and Forecastable?, Journal of Risk and Insurance, 79(4): 995-1015.Browne, M. J., and T. Zhou-Richter, 2014, Lemons or Cherries? Asymmetric Information in the German Private Long-term Care Insurance Market, The Geneva Papers, 39: 603-624.Chang, V. Y., 2019, Does Reinsurance Purchasing Enhance Insurers’ Competitiveness? Evidence from the US property–liability Insurance Industry, The Geneva Papers on Risk and Insurance-Issues and Practice, 44(4): 595-623.Chang, V. Y., and V. S. Jeng, 2016, The Relationship Among the Demand for Reinsurance, Liquidity, and Leverage in the US Property-Liability Insurance Industry, Taiwan Economic Review, 44(4): 543-576.Che, X., and A. P. Liebenberg, 2017, Effects of Business Diversification on Asset Risk-taking: Evidence from the US Property-liability Insurance Industry, Journal of Banking and Finance, 77: 122-136.Chen, J. H., and Y. M. Shiu, 2020a, Does Asymmetric Information Exist in the Reinsurance Markets of Taiwan? Applying Quantile Regression and Natural-Experiment Method, Management Review, 39: 123-140.Chen, J. H., and Y. M. Shiu, 2020b, Does Asymmetric Information Exist in Taiwanese Fire Reinsurance Markets? Taiwan Insurance Review, 36(1): 1-26.Cheng, J., and M. A. Weiss, 2012, The Role of RBC, Hurricane Exposure, Bond Portfolio Duration, and Macroeconomic and Industry‐wide Factors in Property–Liability Insolvency Prediction, Journal of Risk and Insurance, 79(3): 723-750.Cohen, A., 2005, Asymmetric Information and Learning: Evidence from the Automobile Insurance Market, Review of Economics and statistics, 87(2): 197-207.Cohen, A., and P. Siegelman, 2010, Testing for Adverse Selection in Insurance Markets, Journal of Risk and Insurance, 77(1): 39-84.Cohen, A., 2012, Asymmetric Learning in Repeated Contracting: An Empirical Study, Review of Economics and Statistics, 94(2): 419-432.Cole, C. R., and K. A. McCullough, 2006, A Reexamination of the Corporate Demand for Reinsurance, Journal of Risk and Insurance, 73(1): 169-192.Cooper, R., and B. Hayes, 1987, Multi-period Insurance Contracts, International Journal of Industrial Organization, 5(2): 211-231.Cummins, J. D., G. Dionne, R. Gagné, and A. Nouira, 2021, The Costs and Benefits of Reinsurance, The Geneva Papers on Risk and Insurance-Issues and Practice, 46(2): 177-199.Cummins, J. D., and J. F. Outreville, 1992, An International Analysis of Underwriting Cycles in Property-liability Insurance. In: Dionne G., Harrington S.E. (eds) Foundations of Insurance Economics. Huebner International Series on Risk, Insurance and Economic Security, 14. Springer, Dordrecht.Cummins, J. D., M. A. Weiss, and H. Zi, 1999, Organizational Form and Efficiency: The Coexistence of Stock and Mutual Property-liability Insurers, Management Science, 45(9): 1254-1269.Cummins, J. D., and H. Zi, 1998, Comparison of Frontier Efficiency Methods: An Application to the US Life Insurance Industry, Journal of Productivity Analysis, 10(2): 131-152.Dardanoni, V., A. Forcina, and P. L. Donni, 2018, Testing for Asymmetric Information in Insurance Markets: A Multivariate Ordered Regression Approach, Journal of Risk and Insurance, 85(1): 107-125.de Garidel-Thoron, T., 2005, Welfare-improving Asymmetric Information in Dynamic Insurance Markets, Journal of Political Economy, 113(1): 121-150.Dell`Ariccia, G., E. Friedman, and R. Marquez, 1999, Adverse Selection as a Barrier to Entry in the Banking Industry, The RAND Journal of Economics, 515-534.Dionne, G., and N. A. Doherty, 1994, Adverse Selection, Commitment, and Renegotiation: Extension to and Evidence from Insurance Markets, Journal of Political Economy, 102(2): 209-235.Doherty, N. A., and S. M. Tinic, 1981, Reinsurance under Conditions of Capital Market Equilibrium: A Note, Journal of Finance, 36: 949–953.Doherty, N., and K. Smetters, 2005, Moral Hazard in Reinsurance Markets, Journal of Risk and Insurance, 72(3): 375-391.Donker, H., A. Ng, and P. Shao, 2020, Borrower Distress and the Efficiency of Relationship Banking, Journal of Banking & Finance, 112: 105275.Eling, M., R. Jia, and Y. Yao, 2017, Between‐Group Adverse Selection: Evidence from Group Critical Illness Insurance, Journal of Risk and Insurance, 84(2): 771-809.Farah, T., J. Li, Z. Li, and A. Shamsuddin, 2021, The Non-linear Effect of CSR on Firms’ Systematic Risk: International Evidence, Journal of International Financial Markets, Institutions and Money, 71, 101288.Frank, M. Z., and V. K. Goyal, 2009, Capital Structure Decisions: Which Factors Are Reliably Important?, Financial Management, 38(1): 1-37.Froot, K. A, 2007, Risk Management, Capital Budgeting, and Capital Structure Policy for Insurers and Reinsurers, Journal of Risk and Insurance, 74(2): 273-299.Froot, K. A., and P. G. O’Connell, 2008, On the Pricing of Intermediated Risks: Theory and Application to Catastrophe Reinsurance, Journal of Banking & Finance: 32(1): 69-85.Garven, J. R., J. I. Hilliard, and M. F. Grace, 2014, Adverse Selection in Reinsurance Markets, The Geneva Risk and Insurance Review, 39(2): 222-253.Gao, F., M. R. Powers, and J. Wang, 2017, Decomposing Asymmetric Information in China`s Automobile Insurance Market, Journal of Risk and Insurance, 84(4): 1269-1293.Géczy, C., B. A. Minton, and C. Schrand, 1997, Why Firms Use Currency Derivatives, Journal of Finance, 52(4): 1323-1354.Giroud, X., and H. M. Mueller, 2010, Does Corporate Governance Matter in Competitive Industries?, Journal of Financial Economics, 95(3): 312-331.Gravelle, H., 1994, Remunerating Information Providers: Commissions Versus Fees in Life Insurance, Journal of Risk and Insurance, 425-457.Harrington, S. E., and T. Yu, 2003, Do Property‐Casualty Insurance Underwriting Margins Have Unit Roots?, Journal of Risk and Insurance, 70(4): 715-733.Hardwick, P., M. Adams, and H. Zou, 2011, Board Characteristics and Profit Efficiency in the United Kingdom Life Insurance Industry, Journal of Business Finance & Accounting, 38(7‐8): 987-1015.He, J., R. Rejesus, X. Zheng, and J. Yorobe Jr, 2018, Advantageous Selection in Crop Insurance: Theory and Evidence, Journal of Agricultural Economics, 69(3): 646-668.Hendershott, T., D. Li, D. Livdan, and N. Schürhoff, 2020, Relationship Trading in Over‐the‐Counter Markets, The Journal of Finance, 75(2): 683-734.Ho, C. L., 2017, CEO Turnover and Reinsurance Demand in the U.S. Property Casualty Insurance Industry, NTU Management Review, 245-288.Hsu, W. Y., Y. Huang, and G. Lai, 2015, Corporate Governance and Cash Holdings: Evidence from the US property–liability Insurance Industry, Journal of Risk and Insurance, 82(3): 715-748.Huang, L. Y., G. C. Lai, E. Lu, and M. McNamara, 2020, Auditor Quality, Audit Fees, Organizational Structure, and Risk Taking in the US life insurance industry, Risk Management and Insurance Review, 23(2): 151-182.Insurance Research Council, 1991, Adequacy of Motor Vehicle Records in Evaluating Driver Performance (Malvern, PA: Insurance Research Council).Ioannidou, V. and S. Ongena, 2010, “Time for A Change”: Loan Conditions and Bank Behavior when Firms Switch Banks, The Journal of Finance, 65(5): 1847-1877.Jean-Baptiste, E. L., and A. M. Santomero, 2000, The Design of Private Reinsurance Contracts, Journal of Financial Intermediation, 9(3): 274-297.Kennedy, P., 1998, A Guide to Econometrics. fourth ed. Blackwell Publishers.Klein, R. W., 2013, Insurance Market Regulation: Catastrophe Risk, Competition, and Systemic Risk. In Handbook of insurance (pp. 909-939). Springer, New York, NY.Kofman, P., and G. P. Nini, 2013, Do Insurance Companies Possess an Informational Monopoly? Empirical Evidence from Auto Insurance, Journal of Risk and Insurance, 80(4): 1001-1026.Kunreuther, H., and M. Pauly, 1985, Market Equilibrium with Private Knowledge. In: Dionne G., Harrington S.E. (eds) Foundations of Insurance Economics. Huebner International Series on Risk, Insurance and Economic Security, vol 14. Springer, Dordrecht.Kysucky, V., and L. Norden, 2016, The Benefits of Relationship Lending in a Cross-country Context: A Meta-analysis, Management Science, 62(1): 90-110.Lai, G. C., and P. Limpaphayom, 2003, Organizational Structure and Performance: Evidence from the Nonlife Insurance Industry in Japan, Journal of Risk and Insurance, 70(4): 735-757.Laing, D., 1994, Involuntary Layoffs in a Model with Asymmetric Information Concerning Worker Ability, The Review of Economic Studies, 61(2): 375-392.Lamm-Tennant, J., and L. T. Starks, 1993, Stock versus Mutual Ownership Structures: the Risk Implications, Journal of Business, 29-46.Lin, C., M. S. Officer, and H. Zou, 2011, Directors` and Officers` Liability Insurance and Acquisition Outcomes, Journal of Financial Economics, 102(3): 507-525.Lind J. T., and H. Mehlum, 2010, With or without U? The Appropriate Test for a U-shaped Relationship, Oxford Bulletin of Economics and Statistics, 72(1): 109–118.Liu, H. H., Y. M. Shiu, and T. C. Liu, 2016, Reinsurance and Liquidity: Evidence from the United Kingdom General Insurance Industry, The Geneva Papers on Risk and Insurance-Issues and Practice, 41(2): 307-324.Ma, Y. L., and Y. Ren, 2021, Insurer Risk and Performance Before, During, and After the 2008 Financial Crisis: The Role of Monitoring Institutional Ownership, Journal of Risk and Insurance, 88(2): 351-380.Mankai, S., and A. Belgacem, 2016, Interactions between Risk Taking, Capital, and Reinsurance for Property–liability Insurance Firms, Journal of Risk and Insurance, 83(4): 1007-1043.Marvel, H. P., 1982, Exclusive Dealing, The Journal of Law and Economics, 25(1): 1-25.Modigliani, F., and M. H. Miller, 1958, The Cost of Capital, Corporation Finance and the Theory of Investment, American Economic Review, 48(3): 261-297.Nilssen, T., 2000, Consumer Lock-in With Asymmetric Information, International Journal of Industrial Organization, 18(4): 641-666.Olivella, P., and M. Vera‐Hernández, 2013, Testing for Asymmetric Information in Private Health Insurance, The Economic Journal, 123(567): 96-130.Park, S. C., X. Xie, and P. Rui, 2019, The Sensitivity of Reinsurance Demand to Counterparty Risk: Evidence from the US Property–liability Insurance Industry, Journal of Risk and Insurance, 86(4): 915-946.Petersen, M. A., and R. Raghuram, 1994, The Benefit of Lender Relationships: Evidence from Small Business Data, Journal of Finance, 49: 3–37.Plantin, G., 2006, Does Reinsurance Need Reinsurers?, Journal of Risk and Insurance, 73(1): 153-168.Pooser, D. M., and M. J. Browne, 2018, The Effects of Customer Satisfaction on Company Profitability: Evidence from the Property and Casualty Insurance Industry, Risk Management and Insurance Review, 21(2): 289-308.Pottier, S. W., and D. W. Sommer, 1997, Agency Theory and Life Insurer Ownership Structure, Journal of Risk and Insurance, 529-543.Powell, L. S., D. W. Sommer, and D. L. Eckles, 2008, The Role of Internal Capital Markets in Financial Intermediaries: Evidence from Insurer Groups, Journal of Risk and Insurance, 75(2): 439-461.Rothschild, M., and J. Stiglitz, 1976, Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information, The Quarterly Journal of Economics, 90(4): 629-649.Serafeim, G., 2011, Consequences and Institutional Determinants of Unregulated Corporate Financial Statements: Evidence from Embedded Value Reporting, Journal of Accounting Research, 49(2): 529-571.Sheikh, S., A. M. Syed, and S. S. A. Shah, 2018, Corporate Reinsurance Utilisation and Capital Structure: Evidence from Pakistan Insurance Industry, The Geneva Papers on Risk and Insurance-Issues and Practice, 43(2): 300-334.Shi, P., and W. Zhang, 2016, A Test of Asymmetric Learning in Competitive Insurance with Partial Information Sharing, Journal of Risk and Insurance, 83(3): 557-578.Shim, J., 2017, An Investigation of Market Concentration and Financial Stability in Property–liability Insurance Industry, Journal of Risk and Insurance, 84(2): 567-597.Shiu, Y. M., 2011, Reinsurance and Capital Structure: Evidence from the United Kingdom Non‐life Insurance Industry, Journal of Risk and Insurance, 78(2): 475-494.Shiu, Y. M., 2016, Is Reinsurance a Substitute for or a Complement to Derivative Usage? Evidence from the UK non-life Insurance Industry, The Geneva Papers on Risk and Insurance-Issues and Practice, 41(1): 161-178.Sonnenholzner, M., S. Friese, and J. M. G. v. d. Schulenburg, 2009, Reinsurance Brokers and Advice Quality: Is There A Need for Regulation?, The Geneva Risk and Insurance Review, 34(1): 20-46.Spindler, M., 2015, Asymmetric Information in (Private) Accident Insurance, Economics Letters, 130: 85-88.Upreti, V., and M. Adams, 2015, The Strategic Role of Reinsurance in the United Kingdom’s (UK) Non-life Insurance Market, Journal of Banking & Finance, 61: 206-219.Veprauskaite, E., and M. B. Adams, 2018, Leverage and Reinsurance Effects on Loss Reserves in the United Kingdom’s Property–casualty Insurance Industry, Accounting and Business Research, 48(4): 373-399.Yan, Z., 2013, Testing for Moral Hazard in Reinsurance Markets, Managerial Finance, 39(8): 696-713.Yan, Z., and L. Hong, 2015, Testing for Asymmetric Information in Reinsurance markets, The Geneva Papers on Risk and Insurance-Issues and Practice, 40(1): 29-46.Yanase, N., and P. Limpaphayom, 2017, Organization Structure and Corporate Demand for Reinsurance: The Case of the Japanese Keiretsu, Journal of Risk and Insurance, 84(2): 599-629.Wang, K. C., J. L. Peng, Y. Y. Sun, and Y. C. Chang, 2011, The Asymmetric Information Problem in Taiwan`s Cancer Insurance Market, The Geneva Risk and Insurance Review, 36(2): 202-219.Warner, J. B., 1977, Bankruptcy Costs: Some Evidence, Journal of Finance, 32: 337-348.Wooldridge, J. M., 2016, Introductory Econometrics: A Modern Approach, 4th ed. Canada: South-Western Cengage Learning.Wu, C. S. P., and H. Lin, 2009, Large Scale Analysis of Persistency and Renewal Discounts for Property and Casualty Insurance, CAS E-Forum, Winter: 396-408. Available at https://www.casact.org/pubs/forum/09wforum/.Essay 2:Adam, T., S. Dasgupta, and S. Titman, 2007, Financial Constraints, Competition, and Hedging in Industry Equilibrium, The Journal of Finance, 62(5): 2445-2473.Adams, M., and W. Jiang, 2016, Do Outside Directors Influence the Financial Performance of Risk-trading Firms? Evidence from the United Kingdom (UK) insurance industry, Journal of Banking & Finance, 64: 36-51.Aggarwal, R. K., and A. A. Samwick, 2003, Why Do Managers Diversify Their Firms? Agency Reconsidered, Journal of Finance, 58: 71-118.Ai, J., V. Bajtelsmit, and T. Wang, 2018, The Combined Effect of Enterprise Risk Management and Diversification on Property and Casualty Insurer Performance, Journal of Risk and Insurance, 85(2): 513-543.Akerlof, G. A, 1978, The Market for “Lemons”: Quality Uncertainty and the Market Mechanism, In Uncertainty in Economics (pp. 235-251). Academic Press.Altuntas, M., J. Garven, and J. Rauch, 2018, On the Corporate Demand for Insurance: Evidence from the Global Reinsurance Market, Risk Management and Insurance Review, 21(2): 211-242.Altuntas, M., and G. Gößmann, 2016, The Relationship between Home Market Performance and Internationalization Decisions: Evidence from German Insurance Groups, Risk Management and Insurance Review, 19(1): 37-71.Amihud, Y., and B. Lev, 1981, Risk Reduction as a Managerial Motive for Conglomerate Mergers, The Bell Journal of Economics, 605-617.Anand, V., J. Tyler Leverty, and K. Wunder, 2020, Paying for Expertise: The Effect of Experience on Insurance Demand, Journal of Risk and Insurance, 1-30.Andreou, C. K., P. C. Andreou, and N. Lambertides, 2021, Financial Distress Risk and Stock Price Crashes, Journal of Corporate Finance, 67: 101870.Andreou, P. C., Philip, D., and P. Robejsek, 2016, Bank Liquidity Creation and Risk‐taking: Does Managerial Ability Matter?. Journal of Business Finance & Accounting, 43(1-2): 226-259.Baranoff, E., and T. Sager, 2003, The Relations among Organizational and Distribution Forms and Capital and Asset Risk Structures in the Life Insurance Industry, Journal of Risk and Insurance, 70(3): 375-400.Berger, A. N., and C. H. Bouwman, 2013, How Does Capital Affect Bank Performance During Financial Crises?, Journal of Financial Economics, 109(1): 146-176.Berger, A. N., J. D. Cummins, M. A. Weiss, and H. Zi, 2000, Conglomeration versus Strategic Focus: Evidence from the Insurance Industry, Journal of Financial Intermediation, 9(4): 323-362.Berry‐Stölzle, T. R., R. E. Hoyt, and S. Wende, 2013, Capital Market Development, Competition, Property Rights, and the Value of Insurer Product‐line Diversification: A Cross‐country Analysis, Journal of Risk and Insurance, 80(2): 423-459.Berry‐Stölzle, T. R., A. P. Liebenberg, J. S. Ruhland, and D. W. Sommer, 2012, Determinants of Corporate Diversification: Evidence from the Property–liability Insurance Industry, Journal of Risk and Insurance, 79(2): 381-413.Best’s Review, 2000, Higginbotham Goes Online in Merger With Insure Zone, 101(2): 152.Bharath, S. T., S. Dahiya, A. Saunders, and A. Srinivasan, 2011, Lending Relationships and Loan Contract Terms, The Review of Financial Studies, 24(4): 1141-1203.Bolton, P., and D. S. Scharfstein, 1990, A Theory of Predation Based on Agency Problems in Financial Contracting, American Economic Review, 80(1): 93–106.Boot, A. W., and A. Schmeits, 2000, Market Discipline and Incentive Problems in Conglomerate Firms with Applications to Banking, Journal of Financial Intermediation, 9(3): 240-273.Boyer, M. M., & T. Dupont-Courtade, 2015, The Structure of Reinsurance Contracts, The Geneva Papers on Risk and Insurance-Issues and Practice, 40(3): 474-492.Browne, M. J., and T. Zhou-Richter, 2014, Lemons or Cherries? Asymmetric Information in the German Private Long-term Care Insurance Market, The Geneva Papers, 39: 603-624.Campello, M., C. Lin, Y. Ma, and H. Zou, 2011, The Real and Financial Implications of Corporate Hedging, The Journal of Finance, 66(5): 1615-1647.Caporale, G. M., M. Cerrato, and X. Zhang, 2017, Analysing the Determinants of Insolvency Risk for General Insurance Firms in the UK, Journal of Banking & Finance, 84: 107-122.Chang, V. Y., 2019, Does Reinsurance Purchasing Enhance Insurers’ Competitiveness? Evidence from the US Property–liability Insurance Industry, The Geneva Papers on Risk and Insurance-Issues and Practice, 44(4): 595-623.Che, X., 2019, Insurance Market Competition and Reserve Management, Journal of Insurance Issues, 42(2): 1-38.Che, X., S. G. Fier, and A. P. Liebenberg, 2019, The Effect of Predation Risk on Cash Holdings: Empirical Evidence from the US Property‐liability Insurance Industry, Risk Management and Insurance Review, 22(3): 329-358.Che, X., and A. P. Liebenberg, 2017, Effects of Business Diversification on Asset Risk-taking: Evidence from the US Property-liability Insurance Industry, Journal of Banking & Finance, 77: 122-136.Chen J. H., S. C. Chang, and Y. M. Shiu, 2021, Risk-based Capital Regime Adoption and Underwriting Performance: Evidence from the Property-Casualty Insurance Industry in Taiwan, Review of Securities and Futures Markets, 33(3): 83-119.Chen, J. H., and Y. M. Shiu, 2020a, Does Asymmetric Information Exist in the Reinsurance Markets of Taiwan? Applying Quantile Regression and Natural-Experiment Method, Management Review, 39(1): 123-140.Chen, J. H., and Y. M. Shiu, 2020b, Does Asymmetric Information Exist in Taiwanese Fire Reinsurance Markets? Taiwan Insurance Review, 36(1): 1-26.Chiang, C. C., 2020, Does Having an Affiliated Bank Improve Life Insurer Performance in a Turbulent Market?, Journal of Risk and Insurance, 87(3): 627-664.Cohen, A., 2012, Asymmetric Learning in Repeated Contracting: An Empirical Study, Review of Economics and Statistics, 94(2): 419-432.Cohen, A., and P. Siegelman, 2010, Testing for Adverse Selection in Insurance Markets, Journal of Risk and Insurance, 77(1): 39-84.Cole, C. R., and K. A. McCullough, 2006, A Reexamination of the Corporate Demand for Reinsurance, Journal of Risk and Insurance, 73(1): 169-192.Cummins, J. D., M. A. Weiss, X. Xie, and H. Zi, 2010, Economies of Scope in Financial Services: A DEA Efficiency Analysis of the US insurance Industry, Journal of Banking & Finance, 34(7): 1525-1539.Cummins, J. D., M. A. Weiss, and H. Zi, 2003, Economies of Scope in Financial Services: A Dea Bootstrapping Analysis of the U.S. Insurance Industry, Working paper, Wharton Financial Institutions Center.Cutler, D. M., 1994, Market Failure in Small Group Health Insurance, NBER Working Paper No. 4879.de Garidel-Thoron, T., 2005, Welfare-improving Asymmetric Information in Dynamic Insurance Markets, Journal of Political Economy, 113: 121–150.De Haan, L., and J. Kakes, 2010, Are Non-risk Based Capital Requirements for Insurance Companies Binding?, Journal of Banking and Finance, 34, 1618–1627.Dionne, G., and C. Rothschild, 2014, Economic Effects of Risk Classification Bans, The Geneva Risk and Insurance Review, 39(2): 184-221.Doherty, N. A., and J. Lamm‐Tennant, 2009, Lessons from the Financial Crisis on Risk and Capital Management: The Case of Insurance Companies, Journal of Applied Corporate Finance, 21(4): 52-59.Doherty, N., and K. Smetters, 2005, Moral Hazard in Reinsurance Markets, Journal of Risk and Insurance, 72(3): 375-391.Doherty, N. A., and S. M. Tinic, 1981, Reinsurance under Conditions of Capital Market Equilibrium: A Note, Journal of Finance, 36: 949–953.Donker, H., A. Ng, and P. Shao, 2020, Borrower Distress and the Efficiency of Relationship Banking, Journal of Banking & Finance, 112: 105275.Elango, B., Y. L. Ma, and N. Pope, 2008, An Investigation into the Diversification–performance Relationship in the US Property–liability Insurance Industry, Journal of Risk and Insurance, 75(3): 567-591.Eling, M., R. Jia, and Y. Yao, 2017, Between‐Group Adverse Selection: Evidence from Group Critical Illness Insurance, Journal of Risk and Insurance, 84(2): 771-809.Eling, M., and M. Luhnen, 2010, Efficiency in the International Insurance Industry: A Cross-country Comparison, Journal of Banking & Finance, 34(7): 1497–1509.Eling, M., and S. D. Marek, 2014, Corporate Governance and Risk Taking: Evidence from the UK and German Insurance Markets, Journal of Risk and Insurance, 81(3): 653-682.Fan, J. P., J. Huang, F. Oberholzer-Gee, and M. Zhao, 2020, Bureaucrats as Managers and Their Roles in Corporate Diversification, Journal of Corporate Finance, 63, 101171.Finkelstein, A., and J. Poterba, 2004, Adverse Selection in Insurance Markets: Policyholder Evidence from the UK Annuity Market, Journal of Political Economy, 112(1): 183-208.Frank, M. Z., and V. K. Goyal, 2009, Capital Structure Decisions: Which Factors are Reliably Important?, Financial Management, 38(1): 1-37.Fresard, L., 2010, Financial Strength and Product Market Behavior: The Real Effects of Corporate Cash Holdings, Journal of Finance, 65(3): 1097-1122.Froot, K. A., and P. G. O’Connell, 2008, On the Pricing of Intermediated Risks: Theory and Application to Catastrophe Reinsurance, Journal of Banking & Finance, 32(1): 69-85.Gao, F., M. R. Powers, and J. Wang, 2017, Decomposing Asymmetric Information in China`s Automobile Insurance Market, Journal of Risk and Insurance, 84(4): 1269-1293.Garven, J. R., J. I. Hilliard, and M. F. Grace, 2014, Adverse Selection in Reinsurance Markets, The Geneva Risk and Insurance Review, 39(2): 222-253.Géczy, C., B. A. Minton, and C. Schrand, 1997, Why Firms Use Currency Derivatives, Journal of Finance, 52(4): 1323-1354.Giroud, X., and H. M. Mueller, 2010, Does Corporate Governance Matter in Competitive Industries? Journal of Financial Economics, 95(3): 312–331.Gravelle, H., 1994, Remunerating Information Providers: Commissions Versus Fees in Life Insurance, Journal of Risk and Insurance, 425-457.He, D., 2009, The Life Insurance Market: Asymmetric Information Revisited, Journal of Public Economics, 93(9-10): 1090-1097.He, J., R. Rejesus, X. Zheng, and J. Yorobe Jr, 2018, Advantageous Selection in Crop Insurance: Theory and Evidence, Journal of Agricultural Economics, 69(3): 646-668.Hicks, J. R. 1935, Annual Survey of Economic Theory: The Theory of Monopoly, Econometrica, 3(1): 1–20.Hoerger, T. J., F. A. Sloan, M. Hassan, 1990, Loss Volatility, Bankruptcy, and the Demand for Reinsurance, Journal of Risk and Uncertainty, 53, 221–245.Hoyt, R. E., and J. S. Trieschmann, 1991, Risk/return Relationships for Life-health, Property-liability, and Diversified insurers, Journal of Risk and Insurance, 322-330.Hsu, W. Y., Y. Huang, and G. Lai, 2015, Corporate Governance and Cash Holdings: Evidence from the US property–liability Insurance Industry, Journal of Risk and Insurance, 82(3): 715-748.Jean-Baptiste, E. L., and A. M. Santomero, 2000, The Design of Private Reinsurance Contracts, Journal of Financial Intermediation, 9(3): 274-297.Jensen, M. C., and W. H. Meckling, 1976, Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure, Journal of Financial Economics, 3(4): 305-360.Jones, G. R., and C. W. Hill, 1988, Transaction Cost Analysis of Strategy‐structure Choice, Strategic Management Journal, 9(2): 159-172.Kennedy, P., 1998, A Guide to Econometrics. fourth ed. Blackwell Publishers.King, A. A., and C. L. Tucci, 2002, Incumbent Entry into New Market Niches: The Role of Experience and Managerial Choice in the Creation of Dynamic Capabilities, Management Science, 48(2): 171-186.Kofman, P., and G. P. Nini, 2013, Do Insurance Companies Possess an Informational Monopoly? Empirical Evidence from Auto Insurance, Journal of Risk and Insurance, 80(4): 1001-1026.Kysucky, V., and L. Norden, 2016, The Benefits of Relationship Lending in a Cross-country Context: A Meta-analysis, Management Science, 62(1): 90-110.Kunreuther, H., and M. Pauly, 1985, Markets Equilibrium with Private Knowledge: An Example, Journal of Public Economics, 26: 269–288.Lang, L. H. P., and R. M. Stulz, 1994, Tobin`s Q, Corporate Diversification, and Firm Performance, Journal of Political Economy, 102(6): 1248–1280.Liebenberg, A. P., and D. W. Sommer, 2008, Effects of Corporate Diversification: Evidence from the Property–liability Insurance Industry, Journal of Risk and Insurance, 75(4): 893-919.Lin, C., M. S. Officer, and H. Zou, 2011, Directors` and Officers` Liability Insurance and Acquisition Outcomes, Journal of Financial Economics, 102(3): 507-525.Lin, Y., J. Yu, and M. O. Peterson, 2015, Reinsurance Networks and Their Impact on Reinsurance Decisions: Theory and Empirical Evidence, Journal of Risk and Insurance, 82(3): 531-569.Liu, H. H., Y. M. Shiu, and T. C. Liu, 2016, Reinsurance and Liquidity: Evidence from the United Kingdom General Insurance Industry, The Geneva Papers on Risk and Insurance-Issues and Practice, 41(2): 307-324.MacKay, P., and G. M. Phillips, 2005, How Does Industry Affect Firm Financial Structure?, The Review of Financial Studies, 18(4): 1433-1466.Mankai, S., and A. Belgacem, 2016, Interactions between Risk Taking, Capital, and Reinsurance for Property–liability Insurance Firms, Journal of Risk and Insurance, 83(4): 1007-1043.Marvel, H. P., 1982, Exclusive Dealing, The Journal of Law and Economics, 25(1): 1-25.Mayers, D., and C. W. Smith Jr, 1988, Ownership Structure across Lines of Property-Casualty Insurance, The Journal of Law and Economics, 31(2): 351-378.Mayers, D., and C. W. Smith Jr, 1994, Managerial Discretion, Regulation, and Stock Insurer Ownership Structure, Journal of Risk and Insurance, 638-655.Monheit, A. C., and B. S. Schone, 2004, How Has Small Group Market Reform Affected Employee Health Insurance Coverage? Journal of Public Economics, 88(1): 237-254.Morris, B. C., S. G. Fier, and A. P. Liebenberg, 2017, The Effect of Diversification Relatedness on Firm Performance, Journal of Insurance Issues, 125-158.Liebenberg, A. P., and D. W. Sommer, 2008, Effects of Corporate Diversification: Evidence from the Property–liability Insurance Industry, Journal of Risk and Insurance, 75(4): 893-919.Lin, Y., J. Yu, and M. O. Peterson, 2015, Reinsurance Networks and Their Impact on Reinsurance Decisions: Theory and Empirical Evidence, Journal of Risk and Insurance, 82(3): 531-569.Olivella, P., and M. Vera‐Hernández, 2013, Testing for Asymmetric Information in Private Health Insurance, The Economic Journal, 123(567): 96-130.Park, S. C., X. Xie, and P. Rui, 2019, The Sensitivity of Reinsurance Demand to Counterparty Risk: Evidence from the US Property–liability Insurance Industry, Journal of Risk and Insurance, 86(4): 915-946.Parlour, C. A., and G. Plantin, 2008, Loan Sales and Relationship Banking, Journal of Finance, 63: 1291-1314.Peng, L., and Z. Lian, 2020, Diversification and Efficiency of Life Insurers in China and India, The Geneva Papers on Risk and Insurance-Issues and Practice, 1-21.Plantin, G., 2006, Does Reinsurance Need Reinsurers?, Journal of Risk and Insurance, 73(1): 153-168.Pooser, D. M., and M. J. Browne, 2018, The Effects of Customer Satisfaction on Company Profitability: Evidence from the Property and Casualty Insurance Industry, Risk Management and Insurance Review, 21(2): 289-308.Pottier, S. W., and D. W. Sommer, 1997, Agency Theory and Life Insurer Ownership Structure, Journal of Risk and Insurance, 529-543.Powell, L. S., and D. W. Sommer, 2007, Internal Versus External Capital Markets in the Insurance Industry: The Role of Reinsurance, Journal of Financial Services Research, 31(2): 173-189.Rhoades, S. A., and R. D. Rutz, 1982, Market Power and Firm Risk—A Test of the “Quiet Life” hypothesis, Journal of Monetary Economics, 9(1): 73–85.Rothschild, M., and J. Stiglitz, 1976, Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information, The Quarterly Journal of Economics, 90(4): 629-649.Rumelt, R. P., 1974, Strategy, Structure, and Performance, Boston: Graduate School of Business, Harvard University.Savitha, B., S. Banerjee, and A. Shetty, 2019, Product Diversification versus Technical Efficiency of Conglomerate Life Microinsurance Companies: Evidence from India, The Geneva Papers on Risk and Insurance-Issues and Practice, 44(3): 527-547.Servaes, H., 1996, The Value of Diversification during the Conglomerate Merger Wave, The Journal of Finance, 51(4): 1201-1225.Sharpe, S. A., 1990, Asymmetric Information, Bank Lending, and Implicit Contracts: A Stylized Model of Customer Relationships, The Journal of Finance, 45(4): 1069-1087.Shi, P., and W. Zhang, 2016, A Test of Asymmetric Learning in Competitive Insurance with Partial Information Sharing, Journal of Risk and Insurance, 83(3): 557-578.Shim, J., 2011, Mergers & Acquisitions, Diversification and Performance in the US Property-liability Insurance Industry, Journal of Financial Services Research, 39(3): 119-144.Shim, J., 2017, An Investigation of Market Concentration and Financial Stability in Property–liability Insurance Industry, Journal of Risk and Insurance, 84(2): 567-597.Shiu, Y. M., 2011, Reinsurance and Capital Structure: Evidence from the United Kingdom Non‐life Insurance Industry, Journal of Risk and Insurance, 78(2): 475-494.Shiu, Y. M., 2016, Is Reinsurance a Substitute for or a Complement to Derivative Usage? Evidence from the UK Non-life insurance industry, The Geneva Papers on Risk and Insurance-Issues and Practice, 41(1): 161-178.Sharpe, S., 1990, Asymmetric Information, Bank Lending and Implicit Contracts: A Stylized Model of Customer Relationships, Journal of Finance, 45: 1069–1087.Smith, C. W., 1977, Alternative Methods for Raising Capital: Rights Versus Underwritten Offerings, Journal of Financial Economics, 5: 273-307.Sonnenholzner, M., S. Friese, and J. M. G. v. d. Schulenburg, 2009, Reinsurance Brokers and Advice Quality: Is There A Need for Regulation?, The Geneva Risk and Insurance Review, 34(1): 20-46.Spindler, M., 2015, Asymmetric Information in (Private) Accident Insurance, Economics Letters, 130: 85-88.Studenmund, A. H., 2001, Using Econometrics: A Practical Guide, NewYork: Addison Wesley Longman.Teece, D. J., 1980, Economies of Scope and the Scope of the Enterprise, Journal of Economic Behavior & Organization, 1(3): 223-247.Titman, S., and R. Wessels, 1988, The Determinants of Capital Structure Choice, Journal of Finance, 43: 1-19.Upreti, V., and M. Adams, 2015, The Strategic Role of Reinsurance in the United Kingdom’s (UK) Non-life Insurance Market, Journal of Banking & Finance, 61: 206-219.Veprauskaite, E., and M. B. Adams, 2018, Leverage and Reinsurance Effects on Loss Reserves in the United Kingdom’s Property–casualty Insurance Industry, Accounting and Business Research, 48(4): 373-399.Villalonga, B., 2004, Diversification Discount or Premium? New Evidence from the Business Information Tracking Series, Journal of Finance, 59(2): 479-506.Wang, K. C., J. L. Peng, Y. Y. Sun, and Y. C. Chang, 2011, The Asymmetric Information Problem in Taiwan`s Cancer Insurance Market, The Geneva Risk and Insurance Review, 36(2): 202-219.Wooldridge, J. M., 2016, Introductory Econometrics: A Modern Approach, 4th ed. Canada: South-Western Cengage Learning.Xie, X., C. Lee, and M. Eling, 2020, Cyber Insurance Offering and Performance: An Analysis of the US Cyber Insurance Market, The Geneva Papers on Risk and Insurance-Issues and Practice, 45(4): 690-736.Yan, Z., 2013, Testing for Moral Hazard in Reinsurance Markets, Managerial Finance, 39(8): 696-713.Yan, Z., and L. Hong, 2015, Testing for Asymmetric Information in Reinsurance Markets, The Geneva Papers on Risk and Insurance-Issues and Practice, 40(1): 29-46.Essay 3:Adam, T., S. Dasgupta, S. Titman, 2007, Financial Constraints, Competition, and Hedging in Industry Equilibrium, Journal of Finance, 62: 2445–2473.Adams, M., P. Hardwick, and H. Zou, 2008, Reinsurance and Corporate Taxation in the United Kingdom Life Insurance Industry, Journal of Banking & Finance, 32(1): 101-115.Altuntas, M., J. Garven, and J. Rauch, 2018, On the Corporate Demand for Insurance: Evidence from the Global Reinsurance Market, Risk Management and Insurance Review, 21(2): 211-242.Anand, V., J. Tyler Leverty, and K. Wunder, 2020, Paying for Expertise: The Effect ofExperience on Insurance Demand, Journal of Risk and Insurance, 1-30.Andreou, C. K., P. C. Andreou, and N. Lambertides, 2021, Financial Distress Risk and Stock Price Crashes, Journal of Corporate Finance, 67: 101870.Arellano, M., and S. Bond, 1991, Some Tests of Specification for Panel Data: Monte Carlo Evidence and An Application to Employment Equations, The Review of Economic Studies, 58(2): 277-297.Bharath, S. T., S. Dahiya, A. Saunders, and A. Srinivasan, 2011, Lending Relationships and Loan Contract Terms, The Review of Financial Studies, 24(4): 1141-1203.Berry‐Stölzle, T. R., A. P. Liebenberg, J. S. Ruhland, and D. W. Sommer, 2012, Determinants of Corporate Diversification: Evidence from the Property–liability Insurance Industry, Journal of Risk and Insurance, 79(2): 381-413.Blundell, R., and S. Bond, 1998, Initial Conditions and Moment Restrictions in Dynamic Panel Data Models, Journal of Econometrics, 87(1): 115-143.Boulding, W., and R. Staelin, 1990, Environment, Market Share, and Market Power, Management Science, 36(10): 1160–1177.Browne, M. J., L. Ju, and Y. Lei, 2012, Reinsurance Purchases, Contingent CommissionPayments and Insurer Reserve Estimation, The Geneva Papers on Risk and Insurance-Issues and Practice, 37(3): 452-466.Browne, M. J., and T. Zhou-Richter, 2014, Lemons or Cherries? Asymmetric Information in the German Private Long-term Care Insurance Market, The Geneva Papers, 39: 603-624.Campello, M., C. Lin, Y. Ma, H. Zou, 2011, The Real and Financial Implications of Corporate Hedging, Journal of Finance, 66: 1615–1647.Chang, V. Y., 2019, Does Reinsurance Purchasing Enhance Insurers’ Competitiveness? Evidence from the US Property–liability Insurance Industry, The Geneva Papers on Risk and Insurance-Issues and Practice, 44(4): 595-623.Chang, V. Y., and V. S. Jeng, 2016, The Relationship Among the Demand for Reinsurance, Liquidity, and Leverage in the US Property-Liability Insurance Industry, Taiwan Economic Review, 44(4): 543-576.Che, X., and A. P. Liebenberg, 2017, Effects of Business Diversification on Asset Risk-taking: Evidence from the US Property-liability Insurance Industry, Journal of Banking and Finance, 77: 122-136.Chen, Y., I. S. Hamwi, and T. Hudson, 2001, The Effect of Ceded Reinsurance on Solvency of Primary Insurers, International Advances in Economic Research, 7(1): 65-82.Chen, J. H., and Y. M. Shiu, 2020, Does Asymmetric Information Exist in the Reinsurance Markets of Taiwan? Applying Quantile Regression and Natural-Experiment Method, Management Review, 39, 123-140.Cohen, A., 2012, Asymmetric Learning in Repeated Contracting: An Empirical Study, Review of Economics and Statistics, 94(2): 419-432.Cohen, A., and P. Siegelman, 2010, Testing for Adverse Selection in Insurance Markets, Journal of Risk and Insurance, 77(1): 39-84.Cole, C. R., and K. A. McCullough, 2006, A Reexamination of the Corporate Demand for Reinsurance, Journal of Risk and Insurance, 73(1): 169-192.Cummins, J. D., G. Dionne, R. Gagné, and A. Nouira, 2021, The Costs and Benefits of Reinsurance, The Geneva Papers on Risk and Insurance-Issues and Practice, 46(2): 177-199.Cummins, J. D., R. D. Phillips, S. D. Smith, 2001, Derivatives and Corporate Risk Management: Participation and Volume Decisions in the Insurance Industry, Journal of Risk and Insurance, 51-91.Dahlby, B., and D. S. West, 1986, Price Dispersion in an Automobile Insurance Market, The Journal of Political Economy, 94(2): 418–438.Demsetz, H., 1973, Industry Structure, Market Rivalry, and Public Policy, Journal of Law & Economics, 16(1): 1–9.Doherty, N., and K. Smetters, 2005, Moral Hazard in Reinsurance Markets, Journal of Risk and Insurance, 72(3): 375-391.Doherty, N. A., S. M. Tinic, 1981, Reinsurance under Conditions of Capital Market Equilibrium: A Note, Journal of Finance, 36: 949–953.Donker, H., A. Ng, and P. Shao, 2020, Borrower Distress and the Efficiency of Relationship Banking, Journal of Banking & Finance, 112: 105275.Edeling, A., and A. Himme, 2018, When Does Market Share Matter? New Empirical Generalizations from a Meta-analysis of the Market Share–performance Relationship, Journal of Marketing, 82(3): 1-24.Eling, M., R. Jia, and Y. Yao, 2017, Between‐Group Adverse Selection: Evidence FromGroup Critical Illness Insurance, Journal of Risk and Insurance, 84(2): 771-809.Erickson, G. M., and S. A. Finkler, 1985, Determinants of Market Share for a Hospital’s Services, Medical Care, 23(8): 1003–1018.Farah, T., J. Li, Z. Li, and A. Shamsuddin, 2021, The Non-linear Effect of CSR on Firms’ Systematic Risk: International Evidence, Journal of International Financial Markets, Institutions and Money, 71, 101288.Finkelstein, A., and J. Poterba, 2004, Adverse Selection in Insurance Markets: Policyholder Evidence from the UK Annuity Market, Journal of Political Economy, 112(1): 183-208.Froot, K. A. 1999, The Financing of Catastrophe Risk. Chicago: University of Chicago Press.Froot, K. A., 2001, The Market for Catastrophe Risk: A Clinical Examination, Journal of Financial Economics, 60: 529-571.Froot, K. A., D. S. Scharfstein, J. C. Stein, 1993, Risk Management: Coordinating Corporate Investment and Financing Policies, Journal of Finance, 48: 1629–1658.Gale, B. T., 1972, Market Share and Rate of Return, Review of Economics and Statistics, 54(4): 412–423.Gao, F., M. R. Powers, and J. Wang, 2017, Decomposing Asymmetric Information in China`s Automobile Insurance Market, Journal of Risk and Insurance, 84(4): 1269-1293.Garven, J. R., J. I. Hilliard, and M. F. Grace, 2014, Adverse Selection in Reinsurance Markets, The Geneva Risk and Insurance Review, 39(2): 222-253.Garven, J. R. and R. D. MacMinn, 1993, The Underinvestment Problem, Bond Covenants and Insurance, Journal of Risk and Insurance, 60(4): 635–646.Gates, R., C. McDaniel, and K. Braunsberger, 2000, Modeling Consumer Health Plan Choice Behavior to Improve Customer Value and Health Plan Market Share, Journal of Business Research, 48(3): 247-257.Géczy, C., B. A. Minton, and C. Schrand, 1997, Why Firms Use Currency Derivatives, Journal of Finance, 52(4): 1323-1354.Gravelle, H., 1994, Remunerating Information Providers: Commissions Versus Fees in Life Insurance, Journal of Risk and Insurance, 425-457.Haans, R. F., C. Pieters, and Z. L. He, 2016, Thinking about U: Theorizing and Testing U‐and Inverted U‐shaped Relationships in Strategy Research, Strategic Management Journal, 37(7): 1177-1195.Harris, M., A. Raviv, 1991. The Theory of Capital Structure, Journal of Finance, 46: 297–355.He, D., 2009, The Life Insurance Market: Asymmetric Information Revisited, Journal of Public Economics, 93(9-10): 1090-1097.He, J., R. Rejesus, X. Zheng, and J. Yorobe Jr, 2018, Advantageous Selection in Crop Insurance: Theory and Evidence, Journal of Agricultural Economics, 69(3): 646-668.Hellofs, L., and R. Jacobson, 1999, Market Share and Customers’ Perception of Quality: When Can Firms Grow Their Way to Higher Versus Lower Quality?, Journal of Marketing, 63(1): 16–25.Hill, K. E., M. D. Hill, and G. W. Kelly, 2020, Do Market Share and Demand Uncertainty Influence the Relation Between Advertising Expenditures and Shareholder Value?, Journal of Business Research, 115: 61-69.Ho, C. L., 2017, CEO Turnover and Reinsurance Demand in the US Property Casualty Insurance Industry, NTU Management Review, 27(2S): 245-288.Hsu, W. Y., Y. Huang, and G. Lai, 2015, Corporate Governance and Cash Holdings: Evidence from the US property–liability Insurance Industry, Journal of Risk and Insurance, 82(3): 715-748.Jacobson, R., and D. A. Aaker, 1985, Is Market Share All That It’s Cracked Up to Be? Journal of Marketing, 49(4): 11–22.Jean-Baptiste, E. L., and A. M. Santomero, 2000, The Design of Private Reinsurance Contracts, Journal of Financial Intermediation, 9(3): 274-297.Kelly, M., A. Klefner, and D. Leadbetter, 2012, Structure, Principles and Effectiveness of Insurance Regulation in the 21st century: Insights from Canada, The Geneva Papers on Risk and Insurance-Issues and Practice, 37 (1): 155–174.Kennedy, P., 1998. A Guide to Econometrics. fourth ed. Blackwell Publishers.Khorana, A., and H. Servaes, 2012, What Drives Market Share in the Mutual Fund Industry? Review of Finance, 16 (1): 81–113.Kofman, P., and G. P. Nini, 2013, Do Insurance Companies Possess an Informational Monopoly? Empirical Evidence from Auto Insurance, Journal of Risk and Insurance, 80(4): 1001-1026.Kysucky, V., and L. Norden, 2016, The Benefits of Relationship Lending in a Cross-country Context: A Meta-analysis, Management Science, 62(1): 90-110.Lee, H. H., and C. Y. Lee, 2012, An Analysis of Reinsurance and Firm Performance: Evidence from the Taiwan Property-liability Insurance Industry, The Geneva Papers on Risk and Insurance-Issues and Practice, 37(3): 467-484.Lin, C., M. S. Officer, and H. Zou, 2011, Directors` and Officers` Liability Insurance and Acquisition Outcomes, Journal of Financial Economics, 102(3): 507-525.Lind J. T., H. Mehlum, 2010, With or Without U? The Appropriate Test for a U-shaped Relationship, Oxford Bulletin of Economics and Statistics, 72(1): 109–118.Mankai, S., and A. Belgacem, 2016, Interactions between Risk Taking, Capital, and Reinsurance for Property–liability Insurance Firms, Journal of Risk and Insurance, 83(4): 1007-1043.Marvel, H. P., 1982, Exclusive Dealing, The Journal of Law and Economics, 25(1): 1-25.Morris, B. C., S. G. Fier, and A. P. Liebenberg, 2017, The Effect of Diversification Relatedness on Firm Performance, Journal of Insurance Issues, 125-158.Niehaus, G., and S. Mann, 1992, The Trading of Underwriting Risk: An Analysis of Insurance Futures Contracts and Reinsurance, The Journal of Risk & Insurance, 59(4): 601-627.Olivella, P., and M. Vera‐Hernández, 2013, Testing for Asymmetric Information in Private Health Insurance, The Economic Journal, 123(567): 96-130.O’Regan, N., 2002, Market Share: the Conduit to Future Success?, European Business Review, 14(4): 287-293.Park, C. S., and V. Srinivasan, 1994, A Survey-based Method for Measuring and Understanding Brand Equity and Its Extendibility, Journal of Marketing Research, 31(2): 271-288.Parente, R., B. P. Choi, A. H. L. Slangen, and S. Ketkar, 2010, Distribution System Choice in a Service Industry: An Analysis of International Insurance Firms Operating in the United States, Journal of International Management, 16(3): 275-287.Pottier, S. W., and D. W. Sommer, 1997, Agency Theory and Life Insurer Ownership Structure, Journal of Risk and Insurance, 529-543.Regan, L. 1999, Expense Ratios across Insurance Distribution Systems: An Analysis by Line of Business, Risk Management and Insurance Review, 2(2): 44–59.Rothschild, M., and J. Stiglitz, 1976, Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information, The Quarterly Journal of Economics, 90(4): 629-649.Sandvik, I. L., and K. Sandvik, 2003, The Impact of Market Orientation on Product Innovativeness and Business Performance, International Journal of Research in Marketing, 20(4): 355-376.Scordis, N. A., and P. Steinorth, 2012, Value from Hedging Risk with Reinsurance, Journal of Insurance Issues, 210-231.Seog, S. H., 2006, Strategic Demand for Insurance, Journal of Risk and Insurance, 73(2): 279–295.Sheikh, S., A. M. Syed, and S. S. A. Shah, 2018, Corporate Reinsurance Utilisation and Capital Structure: Evidence from Pakistan Insurance Industry, The Geneva Papers on Risk and Insurance-Issues and Practice, 43(2): 300-334.Shi, P., and W. Zhang, 2016, A Test of Asymmetric Learning in Competitive Insurance with Partial Information Sharing, Journal of Risk and Insurance, 83(3): 557-578.Shiu, Y. M., 2011, Reinsurance and Capital Structure: Evidence from the United Kingdom Non‐life Insurance Industry, Journal of Risk and Insurance, 78(2): 475-494.Shiu, Y. M., and C. Y. Hsiao, 2014, The Effect of Loss Ratio on the Use of Reinsurance, Academia Economic Papers, 42(3): 435-483.Shiu, Y. M., and B. F. Huang, 2015, Effects of Risk-based Capital on Reinsurance Use: Evidence from the Taiwan Non-life Insurance Industry, Academia Economic Papers, 43(3): 381-411.Shiu, Y. M., 2016, Is Reinsurance a Substitute for or a Complement to Derivative Usage? Evidence from the UK Non-Life Insurance Industry, The Geneva Papers on Risk and Insurance-Issues and Practice, 41(1): 161-178.Shiu, Y. M., 2020, How Does Reinsurance and Derivatives Usage Affect Financial Performance? Evidence from the UK Non-life Insurance Industry, Economic Modelling, 88: 376-385.Shi, P., and W. Zhang, 2016, A Test of Asymmetric Learning in Competitive Insurance with Partial Information Sharing, Journal of Risk and Insurance, 83(3): 557-578.Shortridge, R. T., and S. M. Avila, 2004, The Impact of Institutional Ownership on the Reinsurance Decision, Risk Management and Insurance Review, 7(2): 93-106.Sonnenholzner, M., S. Friese, and J. M. G. v. d. Schulenburg, 2009, Reinsurance Brokers and Advice Quality: Is There A Need for Regulation?, The Geneva Risk and Insurance Review, 34(1): 20-46.Spindler, M., 2015, Asymmetric Information in (Private) Accident Insurance, Economics Letters, 130: 85-88.Studenmund, A. H., 2001, Using Econometrics: A Practical Guide, NewYork: Addison Wesley Longman.Upreti, V., and M. Adams, 2015, The Strategic Role of Reinsurance in the UnitedKingdom’s (UK) Non-life Insurance Market, Journal of Banking & Finance, 61: 206-219.Upreti, V., M. Adams, and Y. Jia, 2021, Risk Management and the Cost of Equity: Evidence from the United Kingdom’s Non-life Insurance Market, The European Journal of Finance, 1-20.Veprauskaite, E., and M. B. Adams, 2018, Leverage and Reinsurance Effects on Loss Reserves in the United Kingdom’s Property-casualty Insurance Industry, Accounting and Business Research, 48(4): 373-399.Wang, J. L., V. Y. Chang, G. C. Lai, and L. Y. Tzeng, 2008, Demutualization and Demand for Reinsurance, The Geneva Papers on Risk and Insurance-Issues and Practice, 33(3): 566-584.Wang, K. C., J. L. Peng, Y. Y. Sun, and Y. C. Chang, 2011, The Asymmetric Information Problem in Taiwan`s Cancer Insurance Market, The Geneva Risk and Insurance Review, 36(2): 202-219.Weiss, D. L. 1968, Determinants of Market Share, Journal of Marketing Research, 5: 290–295.Wooldridge, J. M., 2016, Introductory Econometrics: A Modern Approach, 4th ed. Canada: South-Western Cengage Learning.Yan, Z., 2013, Testing for Moral Hazard in Reinsurance Markets, Managerial Finance, 39(8): 696-713.Yan, Z., and L. Hong, 2015, Testing for Asymmetric Information in Reinsurance Markets, The Geneva Papers on Risk and Insurance-Issues and Practice, 40(1): 29-46.Yanase, N., and P. Limpaphayom, 2017, Organization Structure and Corporate Demand for Reinsurance: The Case of the Japanese Keiretsu, Journal of Risk and Insurance, 84(2): 599-629.Zanjani, G., 2002, Pricing and Capital Allocation in Catastrophe Insurance, Journal of Financial Economics, 65(2): 283-305. zh_TW dc.identifier.doi (DOI) 10.6814/NCCU202200083 en_US
