Sprecher, C. Ronald; Pertl, Mars A. - In: Journal of Insurance Issues 9 (1986) 1, pp. 1-11
In a previous study of large losses, Sprecher and Pertl showed that large losses have a significant impact on the return of the firm's stock [11]. The reaction in the stock's return may be interpreted to mean that the decline in stock's return reflects the market's expectations about the...