GRACE, MARTIN F.; LEVERTY, J. TYLER - In: Journal of Accounting Research 48 (2010) 1, pp. 21-49
<heading id="h1" level="1" implicit="yes" format="display">ABSTRACT</heading>This paper examines the effect of rate regulation on the management of the property-liability insurer loss reserve. The political cost hypothesis predicts that managers make accounting choices to reduce wealth transfers resulting from the regulatory process. Managers may under-state...