SHORT-TERM EQUITY TRADING PRACTICES OF INSTITUTIONAL INVESTORS: EVIDENCE FROM PROPERTY-CASUALTY INSURERS IN THE UNITED STATES
In addition to premiums, investment income is one of the two main sources of capital for property-casualty (P/C) insurance companies. This study investigates short-term equity trading behavior of P/C insurers in the United States in 2007 and 2008, and finds that over 27 percent of non-group affilia...
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doaj-b2184b76cd2b40b9bce692108a99d0be2021-07-02T06:25:17ZengFaculty of Economics, University of TuzlaEconomic Review1512-89622013-11-01XI02313SHORT-TERM EQUITY TRADING PRACTICES OF INSTITUTIONAL INVESTORS: EVIDENCE FROM PROPERTY-CASUALTY INSURERS IN THE UNITED STATESJin Park0Tim Query1diana State University, Scott College of Busin ess, Analytical Department, USAew Mexico State University, Finance Department , USAIn addition to premiums, investment income is one of the two main sources of capital for property-casualty (P/C) insurance companies. This study investigates short-term equity trading behavior of P/C insurers in the United States in 2007 and 2008, and finds that over 27 percent of non-group affiliated insurers engage in short-term equity trading activity. When it comes to the medium of short-term equity trading, stocks categorized as Industrial and Miscellaneous Stocks are the most frequently utilized with Financial Institutions’ stocks a distant second. This is due to a larger number of stocks falling under these two categories. However, in terms of the mean size of transactions, the average investment in preferred stock ranges from four to five times larger than that of common stocks during the period of interest in this study. The mean holding period for short-term common equity transaction is about 100 and 95 days in 2007 and 2008, respectively. We also identify factors associated with P/C insurers’ short-term equity trading behavior. Logistic regressions show that financial variables are more strongly tied to insurers’ short-term equity trading behavior than underwriting and demographic variables. http://www.ef.untz.ba/images/Casopis/november2013/Paper1november2013.pdfInstitutional investorsProperty- casualty insurersInvestment decisions |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Jin Park Tim Query |
spellingShingle |
Jin Park Tim Query SHORT-TERM EQUITY TRADING PRACTICES OF INSTITUTIONAL INVESTORS: EVIDENCE FROM PROPERTY-CASUALTY INSURERS IN THE UNITED STATES Economic Review Institutional investors Property- casualty insurers Investment decisions |
author_facet |
Jin Park Tim Query |
author_sort |
Jin Park |
title |
SHORT-TERM EQUITY TRADING PRACTICES OF INSTITUTIONAL INVESTORS: EVIDENCE FROM PROPERTY-CASUALTY INSURERS IN THE UNITED STATES |
title_short |
SHORT-TERM EQUITY TRADING PRACTICES OF INSTITUTIONAL INVESTORS: EVIDENCE FROM PROPERTY-CASUALTY INSURERS IN THE UNITED STATES |
title_full |
SHORT-TERM EQUITY TRADING PRACTICES OF INSTITUTIONAL INVESTORS: EVIDENCE FROM PROPERTY-CASUALTY INSURERS IN THE UNITED STATES |
title_fullStr |
SHORT-TERM EQUITY TRADING PRACTICES OF INSTITUTIONAL INVESTORS: EVIDENCE FROM PROPERTY-CASUALTY INSURERS IN THE UNITED STATES |
title_full_unstemmed |
SHORT-TERM EQUITY TRADING PRACTICES OF INSTITUTIONAL INVESTORS: EVIDENCE FROM PROPERTY-CASUALTY INSURERS IN THE UNITED STATES |
title_sort |
short-term equity trading practices of institutional investors: evidence from property-casualty insurers in the united states |
publisher |
Faculty of Economics, University of Tuzla |
series |
Economic Review |
issn |
1512-8962 |
publishDate |
2013-11-01 |
description |
In addition to premiums, investment income is one of the two main sources of capital for property-casualty (P/C) insurance companies. This study investigates short-term equity
trading behavior of P/C insurers in the United States in 2007 and 2008, and finds that over 27 percent of non-group affiliated insurers engage in short-term equity trading activity. When it
comes to the medium of short-term equity trading, stocks categorized as Industrial and Miscellaneous Stocks are the most frequently utilized with Financial Institutions’ stocks a distant second. This is due to a larger number of stocks falling under these two categories. However, in terms of the mean size of
transactions, the average investment in preferred stock ranges from four to five times larger than that of common stocks during the period of interest in this study. The mean holding period for short-term common equity transaction is about 100 and 95 days in 2007 and 2008, respectively. We also identify factors
associated with P/C insurers’ short-term equity trading behavior. Logistic regressions show that financial variables are more strongly tied to insurers’ short-term equity trading behavior
than underwriting and demographic variables. |
topic |
Institutional investors Property- casualty insurers Investment decisions |
url |
http://www.ef.untz.ba/images/Casopis/november2013/Paper1november2013.pdf |
work_keys_str_mv |
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