Petroni, Kathy; Shackelford, Douglas - Financial Institutions Center, Wharton School of Business - 1996
This paper analyzes the effects of risk-based capital (RBC) on life insurers' investment portfolio management. We test for RBC-induced portfolio adjustments by comparing the 1993 change in investment portfolio balances for 1,495 stock life insurers, dichotomized by RBC capitalization, with the...