When Insurers Go Bust applies agency theory and the theories of adverse selection and moral hazard as the motivation …, and transparency. In consequence, ruin theory does not have an operational role. Theory is applied in familiar ways that … inappropriate emphasis on the general theory of excessive risk-taking, which tends to deflect attention from the specific nature of …

also tested and compared with the proposed model. We did not find evidence to support tax theory or to support the … operational argument of transaction cost theory. We find weak evidence to support the liquidity theory, while the asymmetric … information theory was confirmed. A comparison between the agency model proposed and traditional models concluded that the Agency …