Since changes in the firm-specific or unsystematic risks faced by a corporation have no effect on firm value, corporate insurance purchases would seem unwarranted. However, over 57 percent of insurance premiums are paid by businesses. This apparent contradiction has motivated researchers to...

This study extends previous research on life insurer insolvency by providing empirical evidence on a large (nonmatched-pair) sample of insurers based on three alternative types of statistical models. The study utilizes 1986 through 1990 data for a sample of insurers that did or did not become...

This study analyzes the impact of diversification and focus strategies on firms targeted for acquisitions. Based on a sample of acquisitions of property-liability insurers from 1993 to 1997, the study centers on two major questions: (1) whether the diversification or focus decision of the...