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...

PCS Catastrophe Insurance Options were released in 1995 as a means of providing property and casualty insurers with a method of hedging catastrophe exposures. The options are based on the Property Claims Services Office (PCS) index of catastrophe losses. Due to the fact that the underlying index...

Prior literature provides support both for the existence of target capital structures and internal capital markets (ICM). The issue of whether firms use internal capital markets to reduce deviations from target capital structures, however, has yet to be examined. We provide the first empirical...