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...