The aim of this paper is to assess how German savings banks adjust capital and risk under capital regulation. We estimate a modified version of the model developed by Shrieves and Dahl (1992). In comparison to former research, we impose fewer restrictions with regard to the impact of regulation...

In this paper, we assess the effects of CEO stock options on three key corporate policies for banks: investment choice, amount of borrowing, and level of capital. Using a sample of 549 bank-years for publicly traded banks from 1992 to 2002, we find that stock option grants lead CEOs to undertake...

We study a contracting model of leverage and balance sheet size for financial intermediaries that fund their activities through collateralized borrowing. Leverage and balance sheet size increase together when measured risks decrease. When the loss distribution is exponential, the behavior of...

The financial crisis of 2007-09 highlighted the changing role of financial institutions and the growing importance of the shadow banking system, which grew out of the securitization of assets and the integration of banking with capital market developments. This trend was most pronounced in the...

In this paper we have developed a financial model of the non-life insurer to provide assistance for the management of the insurance company in making decisions on product, investment and reinsurance mix. The model is based on portfolio theory and recognizes the stochastic nature of and the...

Der Wettbewerb auf dem deutschen Lebensversicherungsmarkt ist in den letzten Jahren deutlich schärfer geworden. Deregulierung, vermehrte Produktvergleiche, die verstärkte Bedeutung von Financial Strength Ratings und die zunehmende Konkurrenz durch andere Investmentprodukte sind einige der...

Dieser Bericht analysiert den Markt des Third-Party-Asset-Mangements, also der externen Vermögensverwaltung, für Versicherer. Am Jahresende 2001 verfügten die Versicherer weltweit über Vermögen in Höhe von 11,5 Billionen USD. 82% dieser Summe entfielen auf die Lebensversicherer....

In jüngster Vergangenheit hat die Versicherungswirtschaft einen grundlegenden Wandel durchlaufen. Deregulierung, Globalisierung sowie Substitutionskonkurrenz führten zu einem verschärften Wettbewerb um Marktanteile bei sinkenden Gewinnmargen.Aufgrund dieser neuen Wettbewerbsdynamik und den...

How does a change in the risk-free interest-rate affect the value of a non-life insurance company or portfolio? Risk managers typically argue that there should be little impact as long as assets and liabilities are properly matched.