This study investigates the level, structure, and pay-for-performance relationship of CEO compensation in Korean non-life insurance companies. We find that seniority plays an important role in setting CEO compensation practices and that performance-based pay, such as bonus, is more effective...

This article investigates market discipline in the reinsurance market by examining the sensitivity of reinsurance demand to reinsurer counterparty risk for a sample of US property-liability insurance companies. Using the financial strength rating of reinsurers as a proxy for reinsurance...

We investigate the effect of line-of-business diversification on asset risk-taking in the U.S. property-liability industry. The coordinated risk management hypothesis (Schrand and Unal, 1998) implies a negative relation between underwriting risk and investment risk. Consistent with this...

This paper investigates the relationship between female CEOs and insolvency risk of U.S. property-casualty insurance companies. We show that female CEOs are associated with lower insurer insolvency propensity, higher z-score, and lower standard deviation of return on assets. These findings are...

The small decline in the value of mortgage-related assets relative to the large total losses associated with the financial crisis suggests the presence of financial amplification mechanisms, which allow relatively small shocks to propagate through the financial system. We review the literature...

Using regulatory data from financial institutions on fraud-related losses in foreign markets, we find large differences in recovery rates across countries. Specifically, losses in countries with poor governance have lower recoveries. Such results are driven by dimensions such as control of...

Prior studies identify several motives for why firms release management earnings forecasts (MFs). A common feature of such studies is they pool MFs when drawing inferences about a specific motive. By ignoring the heterogeneous rationales managers have to issue MFs, pooling could lead to biased...

U.S. multinational corporations (MNCs) need to allocate decision rights between parent companies and subsidiaries to manage global operations. This paper examines how the allocation of decision rights affects foreign earnings management of MNCs. I find that the extent of foreign earnings...

Using a large sample of domestic and foreign IPOs in the US, we investigate how threats of enforcement by the Securities and Exchange Commission (SEC) and private litigation influence earnings management in IPO prospectuses. We propose that perceptions of foreign institutions may influence SEC...