Summary: | 碩士 === 逢甲大學 === 風險管理與保險學系 === 102 === This study uses a dataset (2007-2011) of 4,434 accounting firm-years in Taiwan to investigate the private firm demand for insurance. We employ the Heckman’s sample selection correction model. In particular, we first test empirically the decision of purchasing insurance with a probit model. In the second stage, we test the determinants of corporate spending on insurance scaled by revenue by applying Inverse Mills Ratio estimated in the probit model. The results show firm size, line-of-business concentration, organizational structure, number of employees and training degree of employees have important impacts on the private firm demand for insurance. Finally our results also indicated that self-selection exist in the insurance scaled by revenue model. Without accommodating the self-selection problem will lead to biased estimators.
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