A note on geographical diversification and performance of the world's largest reinsurance groups

Multinational Business Review

Volumn 20, Issue 4, 2012, Pages 376-391

  Outreville, J François ^a  

^a HEC MONTRÉAL   (Canada)

Author keywords

Degree of internationalization; Financial services; International business; Internationalization; Performance

Indexed keywords

EID: 84894200599     PISSN: 1525383X     EISSN: 20541686     Source Type: Journal    
DOI: 10.1108/15253831211286273     Document Type: Article

References (74)

1. Altunbas, Y., Molyneux, P., Thornton, J. (1997), "Big bank mergers in Europe - an analysis of the cost implications" in Economica, Vol. 64, No. 254, pp. 317-29.
2. Annavarjula, M., Beldona, S. (2000), "Multinationality-performance relationship: a review and reconceptualization" in International Journal of Organizational Analysis, Vol. 8, No. 1, pp. 48-67.
3. Asmussen, C.G. (2009), "Local, regional or global? Quantifying MNE geographic scope" in Journal of International Business Studies, Vol. 40, No. 7, pp. 1192-205.
4. Berger, A.N., Hasan, I., Zhou, M. (2010), "The effects of focus versus diversification on bank performance: evidence from Chinese banks" in Journal of Banking and Finance, Vol. 34, No. 7, pp. 1417-35.
5. Capar, N., Kotabe, M. (2003), "The relationship between international diversification and performance in services firms" in Journal of International Business Studies, Vol. 34, No. 4, pp. 345-55.
6. Chiang, Y.C., Yu, T.H. (2005), "The relationship between multinationality and the performance of Taiwan firms" in Journal of the American Academy of Business, Vol. 6, No. 1, pp. 130-4.
7. Christophe, S.E., Lee, H. (2005), "What matters about internationalization: a market-based assessment" in Journal of Business Research, Vol. 58, No. 5, pp. 636-43.
8. Claessens, S., Van Horen, N. (2007), "Location decisions of foreign banks and competitive advantage", World Bank Policy Research Working Paper WPS 4113, World Bank, Washington, DC.
9. Cole, C.R., Lee, R.B., McCullough, K.A. (2007), "A test of the eclectic paradigm: evidence from the US reinsurance market" in Journal of Risk and Insurance, Vol. 74, No. 2, pp. 493-522.
10. Contractor, F.J. (2007), "Is international business good for companies? The evolutionary or multi-stage theory of internationalization vs the transaction cost perspective" in Management International Review, Vol. 47, No. 3, pp. 453-75.
11. Contractor, F.J., Kundu, S.K., Hsu, C.-C. (2003), "A three-stage theory of international expansion: the link between multinationality and performance in the service sector" in Journal of International Business Studies, Vol. 34, No. 1, pp. 5-18.
12. Cummins, J.D., Weiss, M.A. (2000), "The global market for reinsurance: consolidation, capacity, and efficiency", Brookings-Wharton Papers on Financial Services, Brookings Institute, Washington, DC.
13. Cummins, J.D., Dionne, G., Gagne, R., Nouira, A. (2008), "The costs and benefits of reinsurance", CIRRELT Working paper 2008-26, University of Montreal, Montreal.
14. Cummins, J.D., Weiss, M.A., Xie, X., Zi, H. (2010), "Economies of scope in financial services: a DEA efficiency analysis of the US insurance industry" in Journal of Banking and Finance, Vol. 34, No. 7, pp. 1525-39.
15. De Nicoló, G., Bartholomew, P., Zaman, J., Zephirin, M. (2004), "Bank consolidation, internationalization, and conglomeration: trends and implications for financial risk" in Institutions and Instruments, Vol. 13, No. 4, pp. 173-217.
16. Delios, A. (2011), "Experience and a firm's performance in foreign markets: a commentary essay" in Journal of Business Research, Vol. 64, No. 2, pp. 227-9.
17. Demsetz, R., Strahan, P.E. (1997), "Diversification, size, and risk at bank holding companies" in Journal of Money, Credit and Banking, Vol. 29, No. 3, pp. 300-13.
18. Deng, S., Elyasiani, E. (2008), "Geographic diversification, bank holding company value and risk" in Journal of Money, Credit and Banking, Vol. 40, No. 6, pp. 1217-38.
19. Doz, Y., Santos, J., Williamson, P.J. (2001), From Global to Metanational: How Companies Win in the Knowledge Economy, Harvard Business School Press, Cambridge, MA.
20. Dunning, J.H. (1980), "Towards an eclectic theory of international production: some empirical tests" in Journal of International Business Studies, Vol. 11, No. 1, pp. 9-31.
21. Dunning, J.H. (1988), "The eclectic paradigm of international production: a restatement and some possible extensions" in Journal of International Business Studies, Vol. 19, No. 1, pp. 1-31.
22. Dunning, J.H. (1995), "Reappraising the eclectic paradigm in an age of alliance capitalism" in Journal of International Business Studies, Vol. 26, No. 6, pp. 461-91.
23. Dunning, J.H., Fujita, M., Yakova, N. (2007), "Some macro-data on the regionalization/globalization debate: a comment on the Rugman and Verbeke analysis" in Journal of International Business Studies, Vol. 38, No. 1, pp. 177-99.
24. Eckert, S., Trautnitz, G. (2010), "A commentary on risk reduction by geographic diversification" in Multinational Business Review, Vol. 18, No. 4, pp. 95-113.
25. Elango, B. (2010), "Influence of industry type on the relationship between international operations and risk" in Journal of Business Research, Vol. 63, No. 3, pp. 303-9.
26. Elango, B., Ma, Y.-L., Pope, N. (2008), "An investigation into the diversification-performance relationship in the US property-liability insurance industry" in Journal of Risk and Insurance, Vol. 75, No. 3, pp. 567-91.
27. Fisch, J.H., Oesterle, M.J. (2003), "Exploring the globalization of German MNCs with the complex spread and diversity measure" in Schmalenbach Business Review, Vol. 55, No. 1, pp. 2-21.
28. Focarelli, D., Pozzolo, A.F. (2008), "Cross-border M&As in the financial sector: is banking different from insurance?" in Journal of Banking and Finance, Vol. 32, No. 1, pp. 15-29.
29. Glaser, M., Müller, S. (2010), "Is the diversification discount caused by the book value bias of debt" in Journal of Banking and Finance, Vol. 34, No. 10, pp. 2307-17.
30. Glaum, M., Oesterle, M.J. (2007), "40 years of research on internationalization and firm performance: more questions than answers?" in Management International Review, Vol. 47, No. 3, pp. 307-17.
31. Goerzen, A., Beamish, P.W. (2003), "Geographic scope and multinational enterprise performance" in Strategic Management Journal, Vol. 24, No. 13, pp. 1289-306.
32. Gomes, L., Ramaswamy, K. (1999), "An empirical examination of the form of the relationship between multinationality and performance" in Journal of International Business Studies, Vol. 30, No. 1, pp. 173-88.
33. Hennart, J.F. (2007), "The theoretical rationale for a multinationality-performance relationship" in Management International Review, Vol. 47, No. 3, pp. 423-52.
34. Hitt, M.A., Hoskisson, R.E., Ireland, R.D. (1994), "A mid-range theory of the interactive effects of international and product diversification on innovation and performance" in Journal of Management, Vol. 20, No. 2, pp. 297-327.
35. Hitt, M.A., Hoskisson, R.E., Kim, H. (1997), "International diversification: effects on innovation and firm performance in product-diversified firms" in Academy of Management Journal, Vol. 40, No. 4, pp. 767-98.
36. Hughes, J.P., Mester, L.J. (1998), "Bank capitalization and cost: evidence of scale economies in risk management and signalling" in Review of Economics and Statistics, Vol. 80, No. 2, pp. 314-25.
37. Johansson, J., Vahlne, J.-E. (1977), "The internationalization process of the firm: a model of knowledge development and increasing foreign market commitments" in Journal of International Business Studies, Vol. 8, No. 1, pp. 23-32.
38. Johansson, J., Vahlne, J.-E. (1990), "The mechanism of internalization" in International Marketing Review, Vol. 7, No. 4, pp. 1-24.
39. Katrishen, F.A., Scordis, N.A. (1998), "Economies of scale in services: a study of multinational insurers" in Journal of International Business Studies, Vol. 29, No. 2, pp. 305-23.
40. Khanna, T., Yafeh, Y. (2007), "Business groups in emerging markets: paragons or parasites?" in Journal of Economic Literature, Vol. 45, No. 2, pp. 331-72.
41. Kogut, B., Singh, H. (1998), "The effect of national culture on the choice of entry mode" in Journal of International Business Studies, Vol. 19, No. 3, pp. 411-32.
42. Lai, G.C., Limpaphayom, P. (2003), "Organizational structure and performance: evidence from the nonlife insurance industry in Japan" in Journal of Risk and Insurance, Vol. 70, No. 4, pp. 735-57.
43. Lang, L., Stulz, R. (1994), "Tobin's Q, corporate diversification, and firm performance" in Journal of Political Economy, Vol. 102, No. 6, pp. 1248-80.
44. Lee, I.H. (2010), "The M curve: the performance of born-regional firms from Korea" in The Multinational Business Review, Vol. 18, No. 4, pp. 1-22.
45. Liebenberg, A.P., Sommer, D.W. (2008), "Effects of corporate diversification: evidence from the property-liability insurance industry" in Journal of Risk and Insurance, Vol. 75, No. 4, pp. 893-919.
46. Lu, J.W., Beamish, P.W. (2004), "International diversification and firm performance: the S-Curve hypothesis" in Academy of Management Journal, Vol. 47, No. 4, pp. 598-609.
47. McAllister, P.H., McManus, D.A. (1993), "Resolving the scale efficiency puzzle in banking" in Journal of Banking and Finance, Vol. 17, No. 3, pp. 389-405.
48. Makino, S., Isobe, T., Chan, C.M. (2004), "Does country matter?" in Strategic Management Journal, Vol. 25, No. 10, pp. 1027-43.
49. Martin, J.D., Sayrak, A. (2003), "Corporate diversification and shareholder value: a survey of recent literature" in Journal of Corporate Finance, Vol. 9, No. 1, pp. 37-57.
50. Moore, D., McCabe, G.P., Craig, B. (2012), Introduction to the Practice of Statistics, 7th ed., W.H. Freeman, New York, NY.
51. Outreville, J.F. (2007), "Foreign affiliates of the world largest financial groups: locations and governance" in Research in International Business and Finance, Vol. 21, No. 1, pp. 19-31.
52. Outreville, J.F. (2008), "Foreign affiliates of the largest insurance groups: location-specific advantages" in Journal of Risk and Insurance, Vol. 75, No. 2, pp. 463-91.
53. Outreville, J.F. (2010), "Internationalization, performance and volatility: the world largest financial groups" in Journal of Financial Services Research, Vol. 38, No. 2, pp. 115-34.
54. Outreville, J.F. (2012), "The world's largest reinsurance groups: a look at names, numbers and countries from 1980 to 2010" in Insurance and Risk management Journal, Vol. 80, No. 1, pp. 137-56.
55. Peristiani, S. (1997), "Do mergers improve the X-efficiency and scale efficiency of US banks? Evidence from the 1980s" in Journal of Money, Credit and Banking, Vol. 29, No. 3, pp. 326-37.
56. Rugman, A.M. (1976), "Risk reduction by international diversification" in Journal of International Business Studies, Vol. 7, No. 2, p. 75.
57. Rugman, A.M. (1979), International Diversification and the Multinational Enterprise, Lexington Books, Lexington, MA.
58. Rugman, A.M. (1981), Inside the Multinationals: The Economics of Internal Markets, Columbia University Press, New York, NY.
59. Rugman, A.M. (2010), "Reconciling internationalization theory and the eclectic paradigm" in Multinational Business Review, Vol. 18, No. 2, pp. 1-12.
60. Rugman, A.M., Verbeke, A.A. (2004), "A perspective on regional and global strategies of multinational enterprises" in Journal of International Business Studies, Vol. 35, No. 1, pp. 3-18.
61. Rugman, A.M., Verbeke, A. (2005), "Towards a theory of regional multinationals: a transaction cost economics approach" in Management International Review, Vol. 45, No. 1, pp. 5-17.
62. Ruigrok, W., Wagner, H. (2003), "Internationalization and performance: an organizational learning perspective" in Management International Review, Vol. 43, No. 1, pp. 63-83.
63. Schmid, M.M., Walter, I. (2008), "Do financial conglomerates create or destroy economic value?", NYU Working Paper no. 2451/26090, New York University, New York, NY.
64. Sethi, S.P., Elango, B. (1999), "The influence of country of origin on multinational corporations global strategy" in Journal of International Management, Vol. 5, No. 2, pp. 285-98.
65. Sommer, L. (2009), "Degree of internationalization - a multidimensional challenge" in Journal of Applied Business Research, Vol. 25, No. 3, pp. 93-109.
66. Standard & Poor's (n.d.), "Global reinsurance highlights, 2003 to 2007", available at: www.reactionsnet.com.
67. Thomas, D.E., Eden, L. (2004), "What is the shape of the multinationality-performance relationship?" in The Multinational Business Review, Vol. 12, No. 1, pp. 89-110.
68. United Nations Conference on Trade and Development (UNCTAD) (2006), "World investment report: FDI from developing and transition economies", United Nations, Geneva, available at: www.unctad.org/wir.
69. United Nations Conference on Trade and Development (UNCTAD) (2007), The Universe of the Largest Transnational Corporations, Current Studies on FDI and Development, No. 3, UNCTAD, Geneva.
70. Weiss, M.A., Chung, J.H. (2004), "US reinsurance prices, financial quality, and global capacity" in Journal of Risk and Insurance, Vol. 71, No. 3, pp. 437-67.
71. Wolf, J., Dunemann, T., Egelhoff, W.G. (2012), "Why MNCs tend to concentrate their activities in their home region" in Multinational Business Review, Vol. 20, No. 1, pp. 67-91.
72. Miller, S.M., Noulas, A.G. (1996), "The technical efficiency of large bank production" in Journal of Banking and Finance, Vol. 20, No. 3, pp. 495-509.
73. Rugman, A.M., Oh, C.H. (2011), "Methodological issues in the measurement of multinationality of US firms" in Multinational Business Review, Vol. 19, No. 3, pp. 202-12.
74. United Nations Conference on Trade and Development (UNCTAD) (2004), "World investment report: the shift towards services", United Nations, Geneva, available at: www.unctad.org/wir.