Under regulatory pressure,the risk-taking of a life insurance firm

• Main Authors: Chih-yao Chao, 趙芷瑤
• Other Authors: Wen-chang Lin
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/46172845506783868424

碩士 === 國立中正大學 === 財務金融所 === 95 === The purpose of this study is to examine the effect of RBC, franchise value and business strategy on restraining the risk-taking behavors of life insurance companies in the U.S. using simultaneous threshold regression model. We first test whether life insurance companies increase their capital holding and decrease their risk-taking level after implementing risk-based capital regulation. Subsequently, we test whether franchise value and business strategies are related to the risk-taking behavior of life insurance companies. Our empirical results indicate that regulatory pressure dose not effectively suppress the risk-taking behaviors of life insurers. However, the hypotheses that franchise value and business strategy can serve as risk controlling tools are partially supported.