The capital structure of firms subject to price regulation: Evidence from the insurance industry

Journal of Financial Services Research

Volumn 21, Issue 1-2, 2002, Pages 79-100

  Klein, Robert W ^a   Phillips, Richard D ^a   Shiu, Wenyan ^b  

^a GEORGIA STATE UNIVERSITY   (United States)

^b Georgia State University ^*

Author keywords

Capital structure; Insurance; Price regulation

Indexed keywords

EID: 0036298831     PISSN: 09208550     EISSN: None     Source Type: Journal    
DOI: 10.1023/A:1014373718100     Document Type: Article

References (42)

1. Ang, James S., Jess H. Chua, and John J. McConnell "The Administrative Costs of Corporate Bankruptcy: A Note." Journal of Finance 37, no. 1 (1982), 219-226.
2. Best, A. M. Best's Key Rating Guide: Property-Casualty Edition. Oldwick, NJ: A.M. Best Co., Inc., 1997.
3. Best, A. M. Best's Aggregates & Averages: Property-Casualty Edition. Oldwick, NJ: A.M. Best Co., Inc., 1998.
4. Bradley, Michael, Gregg A. Jarrell, and E. Han Kim. "On the Existence of an Optimal Capital Structure: Theory and Evidence." Journal of Finance 39, no. 3 (1984), 857-878.
5. Carroll, Anne M. "An Empirical Investigation of the Structure and Performance of the Private Workers' Compensation Market." Journal of Risk and Insurance 60, no. 2 (1993), 185-207.
6. Chaplinsky, Susan and Greg, Niehaus. "Do Inside Ownership and Leverage Share Common Determinants." Quarterly Journal of Business and Economics 32, no. 4 (1993), 51-65.
7. Conning Insurance Research & Publication. State Market Analysis for Property-Casualty Insurance 1997. Hartford: Conning & Company, 1998.
8. Cummins, J. David. "Property-Liability Insurance Price Deregulation: The Last Bastion? Synthesis of Findings and Additional Observations." In: J. D. Cummins, ed., Deregulating Property-Liability Insurance: Restoring Competition and Increasing Market Efficiency. Washington D.C.: American Enterprise Institute-Brookings Institution Joint Center for Regulatory Studies, 2001.
9. Cummins, J. David and Elizabeth Grace. "Tax Management and Investment Strategies of Property-Liability Insurers." Journal of Banking and Finance 18, no. 1 (1994), 43-72.
10. Cummins, J. David, and J. Francois Outreville. "An International Analysis of Underwriting Cycles." Journal of Risk and Insurance 54, no. 2 (1987), 246-262.
11. Cummins, J. David, Richard D. Phillips, and Sharon Tennyson. "Regulation, Political Influence and the Price of Automobile Insurance." Journal of Insurance Regulation (forthcoming).
12. Cummins, J. David and David W. Sommer "Capital and Risk in Property-Liability Insurance Markets." Journal of Banking and Finance 20, no. 6 (1996), 1069-1092.
13. Danzon, Patricia M. and Scott E. Harrington. "Rate Regulation, Safety Incentives, and Loss Growth in Workers' Compensation Insurance." Journal of Business 73, no. 4 (2000), 569-596.
14. Dasgupta, Sudipto and Vikram Nanda. "Bargaining and Brinkmanship - Capital Structure Choice by Regulated Firms." International Journal of Industrial Organizatioin 11, no. 4 (1993), 475-497.
15. Grabowski, Henry, W. Kip Viscusi, and William N. Evans. "Price and Availability Tradeoffs of Automobile Insurance Rate Regulation." Journal of Risk and Insurance 56, no. 2 (1989). 275-299.
16. Grace, Martin F., Robert W. Klein, and Richard D. Phillips. "Auto-Insurance Reform: Salvation in South Carolina." In: J. D. Cummins, ed., Deregulating Property Liability Insurance: Restoring Competition and Increasing Market Efficiency. Washington D.C.: American Enterprise Institute-Brookings Institution Joint Center for Regulatory Studies, 2001.
17. Harrington, Scott E. "A Note on the Impact of Auto Insurance Rate Regulation." Review of Economics and Statistics 69, no. 1 (1987), 166-170.
18. Harrington, Scott E. "Rate Suppression." Journal of Risk and Insurance 59, no. 2 (1992). 185-202.
19. Harrington, Scott E. "An Econometric Analysis of Insurance Rate Regulation." In: J. D. Cummins, ed., Deregulating Property-Liability Insurance: Restoring Competition and Increasing Market Efficiency. Washington D.C.: American Enterprise Institute-Brookings Institution Joint Center for Regulatory Studies, 2001.
20. Jensen, Michael C. "Agency Costs of Free Cash Flow, Corporate Finance and Takeovers." American Economic Review 76, no. 2 (1986), 323-339.
21. Joskow, Paul L. "Cartels, Competition and Regulation in the Property-Liabitity Insurance Industy." Bell Journal of Economics 4. no. 2 (1973), 375-427.
22. Kimball, Spencer L. and Barbara P. Heaney. Federalism and Insurance Regulation: Basic Source Materials. Kansas City: NAIC, 1995.
23. Klein, Robert W. "Regulatory Stringency and Market Performance in Private Passenger Automobile Insurance." Michigan State University. Unpublished dissertation, 1986.
24. Klein, Robert W. "The Regulation of Catastrophe Insurance: An Initial Overview." Working paper, Georgia State University, 1998.
25. Klein, Robert W., Eric C. Nordman, and Julienne L. Fritz. Market Conditions in Workers' Compensation Insurance. Kansas City: NAIC, 1993.
26. Laber, Gene. "Regulators' Decisions on Rates of Return: Recent Experience in the Telephone Industry." Quarterly Journal of Business and Economics 27, no. 2 (1988), 3-22.
27. Meier, Kenneth J. The Political Economy of Regulation - The Case of Insurance. State University of New York Press, 1988.
28. Myers, Stewart C. and Nicholas S. Majluf. "Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not Have." Journal of Financial Economics 13, no. 2 (1984), 187-221.
29. National Association of Insurance Commissioners. NAIC's Compendium of State Laws on Insurance Topics. Kansas City: NAIC, 1995.
30. Rao, Ramesh and Charles R. Moyer. "Regulatory Climate and Electrical Utility Capital Structure Decisions." Financial Review 29, no. 1 (1994), 97-124.
31. Shiu, Wenyan. "The Capital Structure of Regulated Firms: Theory and Empirical Evidence from the Property Liability Insurance Industry." Georgia State University. Unpublished dissertation, 2000.
32. Spiegel, Yossef and Daniel F. Spulber. "The Capital Structure of a Regulated Firm." Rand Journal of Economics 25, no. 3 (1994), 424-440.
33. Smallwood, D. "Competition, Regulation, and Product Quality in the Automobile Insurance Industry." In: A. Phillips, ed., Promoting Competition in Regulated Markets. Washington, D.C.: The Brookings Institution, 1975.
34. Suponcic, Susan J. and Sharon Tennyson. "Rate Regulation and the Industrial Organization of Automobile Insurance." In: D. F. Bradford, ed., The Economics of Property-Casualty Insurance. The University of Chicago Press, 1998.
35. Taggart, Robert A. Jr. "Rate of Return Regulation and Utility Capital Structure Decisions." Journal of Finance 36, no. 2 (1981), 383-393.
36. Taggart, Robert A. Jr. "Effects of Regulation on Utility Financing: Theory and Evidence." Journal of Industrial Economics 33, no. 3 (1985), 257-276.
37. Taylor Gregory C. Claim Reserving in Non-Life Insurance. New York: North-Holland Press, 1986.
38. Tennyson, Sharon. "The Effect of Rate Regulation on Underwriting Cycles." CPCU, Journal 44, no. 1 (1991), 33-45.
39. Tennyson, Sharon. "The Impact of Rate Regulation on State Automobile Insurance Markets" Journal of Insurance Regulation 15, no. 4 (1997), 502-523.
40. Titman, Sheridan and Roberto Wessels. "The Determinants of Capital Structure Choice." Journal of Finance 43, no. 1 (1988), 1-19.
41. Vetsuypens, Michael R. and John A. Helmuth. "Airline Deregulation: Additional Evidence from the Capital Markets." Quarterly Journal of Business and Economics 27, no. 2 (1988), 117-138.
42. Warner, Jerold B. "Bankruptcy Costs: Some Evidence." Journal of Finance 32, no. 2 (1977), 337-347.