search query: @author Smith, C. W. Jr. / total: 5
reference: 4 / 5
| Author: | Lee, S. Mayers, D. Smith, C. W. Jr. |
| Title: | Guaranty funds and risk-taking: Evidence from the insurance industry |
| Journal: | Journal of Financial Economics
1997 : APR, VOL. 44:1, p. 3-24 |
| Index terms: | GUARANTEES FUNDS RISK INSURANCE COMPANIES |
| Language: | eng |
| Abstract: | This article investigates whether establishing sta insurance guaranty funds affects risk-taking by property-liability insurance companies. Insurance guaranty funds pool the resources of insurers to pay covered claims against an insolvent insurer. The evidence suggests that the risk of insurers' asset portfolios increases following enactments, but the increase in risk is special for stock insurers only. The way how guaranty-funds are organized creates coounterproductive investment incentives for stock companies especially. |
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