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The determinants of corporate financial performance in the Bermuda insurance market

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  • M. Adams
  • M. Buckle
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    Abstract

    Drawing a framework from the organizational economics literature this study examines the determinants of corporate (i.e. underwriting and investment related) financial performance in the Bermuda insurance market. Using panel data for 1993-1997, it was found that, as expected, highly leveraged, lowly liquid companies and reinsurers have better operational performance than lowly leveraged, highly liquid companies and direct insurers. Contrary to what was hypothesized, performance was positively related to underwriting risk. However, the size of companies and the scope of their activities were not found to be important explanatory factors.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/09603100210105030
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Applied Financial Economics.

    Volume (Year): 13 (2003)
    Issue (Month): 2 ()
    Pages: 133-143

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    Handle: RePEc:taf:apfiec:v:13:y:2003:i:2:p:133-143

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    Web page: http://www.tandfonline.com/RAFE20

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    Cited by:
    1. Hong Zou & Min-Ming Wen & Charles Yang & Mulong Wang, 2012. "Underwriting and investment risks in the property-liability insurance industry: evidence prior to the 9–11 event," Review of Quantitative Finance and Accounting, Springer, vol. 38(1), pages 25-46, January.
    2. Zélia Serrasqueiro & Paulo Maçãs Nunes, 2008. "Performance and size: empirical evidence from Portuguese SMEs," Small Business Economics, Springer, vol. 31(2), pages 195-217, August.
    3. Zélia Serrasqueiro, 2009. "Growth and Profitability in Portuguese Companies: a Dynamic Panel Data Approach," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 11(26), pages 565-573, June.
    4. Yung-Ming Shiu, 2006. "Corporate liquidity: evidence from the United Kingdom life insurance industry," Applied Economics Letters, Taylor & Francis Journals, vol. 13(15), pages 993-998.
    5. Pedro Guedes de Carvalho & Zélia Serrasqueiro & Paulo Maças Nunes, 2013. "Profitability determinants of fitness SMEs: Empirical evidence from Portugal using panel data," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 15(34), pages 417-430, June.

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