market regulation under aggregate uncertainty. If available equity capital is below a threshold, any equilibrium of the basic … insured. Investment is efficient, and the efficient allocation can be implemented via transfers alone. For intermediate …

In this study, we examine the effect of capital regulation on insurers’ pricing behavior using homeowners’ insurance … increases is restrained; we attribute the small magnitude to insurance pricing regulation. Taken together with the size of the … homeowners insurance prices, we find empirical evidence that the reform results in price increases, though the magnitude of the …

Insurance companies often follow highly correlated investment strategies. As major investors in corporate bonds, their … investment commonalities subject investors to fire-sale risk when regulatory restrictions prompt widespread divestment of a bond … following a rating downgrade. Reflective of fire-sale risk, clustering of insurance companies in a bond has significant …

Why did shareholder liability disappear? We address this question by looking at its use by British insurance companies … from 1830 until its complete disappearance by 1975. We explore three explanations for its demise: (1) regulation and …) shareholders saw an opportunity to expunge something they disliked when insurance companies grew in size. Using hand …

We develop a model in which accounting information and prudential regulation interact to affect banks' incentives to …

Politicians frequently intervene in the regulation of financial accounting. Evidence from the accounting literature …' involvement at exactly those points when the debate focuses on the economic consequences of accounting regulation (i.e., bank …

Politicians frequently intervene in the regulation of financial accounting. Evidence from the accounting literature …' involvement at exactly those points when the debate focuses on the economic consequences of accounting regulation (i.e., bank …

-level measure of ex ante sensitivity to information regulation and find that the information content of subsequent information … events is higher for sensitive firms. Increased information content comes from negative news, consistent with regulation … constraining discretionary disclosure. Information regulation improves capital allocation by reducing asymmetric information in …

This article develops a theory of standard-setting in which accounting standards emerge endogenously from an … institutional bargaining process. It provides a unified framework with investment and voluntary disclosure to examine the links …