Monitoring, ownership, and risk-taking: The impact of guaranty funds

Journal of Risk and Insurance

Volumn 66, Issue 3, 1999, Pages 477-497

  Downs, David H ^a   Sommer, David W ^a  

^a NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0000598597     PISSN: 00224367     EISSN: None     Source Type: Journal    
DOI: 10.2307/253557     Document Type: Article

References (37)

1. Agrawal, Anup and Gershon N. Mandelker, 1987, Managerial Incentives and Corporate Investment and Financing Decisions, Journal of Finance, 42: 823-837.
2. A.M. Best Company, 1991, Best's Insolvency Study: Property/Casualty Insurers: 1969-1990 (Oldwick, NJ: A.M. Best).
3. Bagnini, Elizabeth Strock, Nikolaos T. Milonas, Anthony Saunders, and Nickolaos G. Travlos, 1994, Managers, Owners, and the Pricing of Risky Debt: An Empirical Analysis, Journal of Finance, 49: 453-477.
4. Berle, Adolf A. and Gardiner C. Means, 1932, The Modern Corporation and Private Property (New York: Macmillan Publishing Company).
5. Bohn, James G. and Brian J. Hall, 1998, The Moral Hazard of Insuring the Insurers, in: Kenneth A. Froot, ed., The Financing of Catastrophic Risk (Chicago: University of Chicago Press).
6. Brewer, Elijah, III, 1995, The Impact of Deposit Insurance on S&L Shareholders' Risk/ Return Trade-offs, Journal of Financial Services Research, 9: 65-89.
7. Brewer, Elijah, III, and Thomas S. Mondschean, 1994, An Empirical Test of the Incentive Effects of Deposit Insurance: The Case of Junk Bonds at Savings and Loan Associations, Journal of Money, Credit, and Banking, 26: 146-164.
8. Brewer, Elijah, III, Thomas S. Mondschean, and Philip E. Strahan, 1997, The Role of Monitoring in Reducing the Moral Hazard Problem Associated with Government Guarantees: Evidence from the Life Insurance Industry, Journal of Risk and Insurance, 64: 301-322.
9. Cummins, J. David, 1988, Risk-Based Premiums for Insurance Guaranty Funds, Journal of Finance, 43: 823-839.
10. Cummins, J. David and Patricia M. Danzon, 1997, Price, Financial Quality, and Capital Flows in Insurance Markets, Journal of Financial Intermediation, 6: 3-38.
11. Cummins, J. David and Scott E. Harrington, 1988, The Relationship Between Risk and Return: Evidence for Property-Liability Insurance Stocks, Journal of Risk and Insurance, 55: 15-31.
12. Cummins, J. David, Scott E. Harrington, and Robert Klein, 1995, Insolvency Experience, Risk-Based Capital, and Prompt Corrective Action in Property-Liability Insurance, Journal of Banking and Finance, 19: 511-527.
13. Cummins, J. David, Scott E. Harrington, and Greg Niehaus, 1995, Risk-Based Capital Requirements for Property-Liability Insurers: A Financial Analysis, in: Edward I. Altman and Irwin T. Vanderhoof, eds., The Financial Dynamics of the Insurance Industry (New York: Irwin), 111-151.
14. Cummins, J. David and David W. Sommer, 1996, Capital and Risk in Property-Liability Insurance Markets, Journal of Banking and Finance, 20: 1069-1092.
15. Esty, Benjamin C., 1997, Organizational Form and Risk Taking in the Savings and Loan Industry, Journal of Financial Economics, 44: 25-55.
16. Fama, Eugene F. and Michael C. Jensen, 1983a, Separation of Ownership and Control, Journal of Law and Economics, 26: 301-325.
17. Fama, Eugene F. and Michael C. Jensen, 1983b, Agency Problems and Residual Claims, Journal of Law and Economics, 26: 327-349.
18. Feldhaus, William R. and Paul M. Kazenski, 1998, Risk-Based Guaranty Fund Assessments: An Allocation Alternative for Funding Insurer Insolvencies, Journal of Insurance Regulation, 17: 42-63.
19. Fenn, George W. and Rebel A. Cole, 1994, Announcements of Asset-Quality Problems and Contagion Effects in the Life Insurance Industry, Journal of Financial Economics, 35: 181-198.
20. Furlong, Frederick T. and Michael C. Keeley, 1989, Capital Regulation and Bank Risk-Taking: A Note, Journal of Banking and Finance, 13: 883-891.
21. Gorton, Gary and Richard Rosen, 1995, Corporate Control, Portfolio Choice, and the Decline of Banking, Journal of Finance, 50: 1377-1420.
22. Hall, Brian J., 1998, Risk-Taking Incentives and the Cost of Insurance Company Failures, in: Robert W. Klein, ed., Alternative Approaches to Insurance Regulation (Kansas City, MO: National Association of Insurance Commissioners).
23. Jensen, Michael C. and William H. Meckling, 1976, Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure, Journal of Financial Economics, 3: 305-360.
24. Jensen, Michael C. and Kevin J. Murphy, 1990, Performance Pay and Top Management Incentives, Journal of Political Economy, 98: 225-264.
25. Kane, Edward J., 1989, The S&L Insurance Mess: How did it Happen? (Washington, D.C.: Urban Institute Press).
26. Keeley, Michael C., 1990, Deposit Insurance, Risk, and Market Power in Banking, American Economic Review, 80: 1183-1200.
27. Klein, Robert W. and Michael M. Barth, 1995, Solvency Monitoring in the Twenty-First Century, Journal of Insurance Regulation, 13: 256-301.
28. Knopf, John D. and John L. Teall, 1996, Risk-Taking Behavior in the U.S. Thrift Industry: Ownership Structure and Regulatory Changes, Journal of Banking and Finance, 20: 1329-1350.
29. Lee, Soon-Jae, David Mayers, and Clifford W. Smith, Jr., 1997, Guaranty Funds and Risk-Taking: Evidence from the Insurance Industry, Journal of Financial Economics, 44: 3-24.
30. Lev, Baruch, 1974, On the Association Between Operating Leverage and Risk, Journal of Financial and Quantitative Analysis, 9: 627-642.
31. Mandelker, Gershon N. and S. Ghon Rhee, 1984, The Impact of Degrees of Operating and Financial Leverage on Systematic Risk of Common Stock, Journal of Financial and Quantitative Analysis, 19: 45-57.
32. Merton, R. C., 1977, An Analytic Derivation of the Cost of Deposit Insurance and Loan Guarantees: An Application of Modern Option Pricing Theory, Journal of Banking and Finance, 1: 3-11.
33. Morck, Randall, Andrei Shleifer, and Robert W. Vishny, 1988, Management Ownership and Market Valuation: An Empirical Analysis, Journal of Financial Economics, 20: 293-315.
34. Phillips, Richard D., J. David Cummins, and Franklin Allen, 1998, Financial Pricing of Insurance in the Multiple-Line Insurance Company, Journal of Risk and Insurance, 65: 597-636.
35. Saunders, Anthony, Elizabeth Strock, and Nickolaos G. Travlos, 1990, Ownership Structure, Deregulation, and Bank Risk Taking, Journal of Finance, 45: 643-654.
36. Sommer, David W., 1996, The Impact of Firm Risk on Property-Liability Insurance Prices, Journal of Risk and Insurance, 63: 501-514.
37. U.S. General Accounting Office, 1991, Insurance Industry: Questions and Concerns about Solvency Regulation (Washington, D.C.: Government Printing Office).