Concentration in the U.S. insurance industry’s market shares and ownership, coupled with a network interlocking ownership relationships by institutional investors, raise social concerns. Studying the relationship between Tobin’s q and corporate governance features of the industry, we fail to...

In a word, where information is costly, volatile cash flows create information acquisition costs that reduce value. Thus, managers act to reduce their firm's volatility of cash flow in anticipation of higher value for shareholders. However, when managers reduce the firm's cash flow volatility,...

We construct two potential scenarios to depict the cash flows from the operation of a captive insurer. We then use Monte Carlo simulation to identify conditions that are sustainable in practice and under which captives have a high probability of creating positive shareholder value. We use...

This study finds a negative relation between the use of a board-level risk committee and insurer value. The data are annual observations from 68 publicly traded insurers over years 2016 to 2003. The study examines the impact on value because the arguments favoring the use of a board-level risk...

The existing concepts of risk management face challenges when applied in practice. The perception of risk depends on the observer's cognitive biases and world view which nuance risk related decisions. How an observer decides also depends on the metric used to quantify risk. While there is...

This study finds a negative relation between the use of a board-level risk committee and insurer value. The data are annual observations from 68 publicly traded insurers over years 2016 to 2003. The study examines the impact on value because the arguments favoring the use of a board-level risk...

Concentration in the U.S. insurance industry's market shares and ownership, coupled with a network interlocking ownership relationships by institutional investors, raise social concerns. Studying the relationship between Tobin's q and corporate governance features of the industry, we fail to...

This article applies the concept of prudence to develop the characteristics of responsible risk modeling practices in the insurance industry. A critical evaluation of the risk modeling process suggests that ethical judgments are emergent rather than static, vague rather than clear, particular...