Advanced Search
MyIDEAS: Login to save this paper or follow this series

Principals and Agents in Crisis: Reforms of Accounting and Audit at Lloyd's in 1982-6

Contents:

Author Info

  • Gwilliam, David
  • Macve, Richard
  • Meeks, Geoffrey
Registered author(s):

    Abstract

    The paper explores the monitoring by 'external Names' (the principals) of 'working Names' (their agents) in the Lloyd's insurance market of the 1970s and early 1980s. The market was relying heavily on external Names to finance its rapid growth; and these principals were dependent upon their agents to determine the extent and nature of the risks they were underwriting, and their share of the returns. Contrary to expectations based on agency theory, the paper finds little evidence that more formal and rigorous accounting and audit accompanied the sharp rise in external investment in the market. Such changes in monitoring were only installed as a result of intervention by government and the City, after revelations that insider agents had exploited their informational advantage to plunder their principals' assets. The paper discusses institutional characteristics of the Lloyd's market that might help explain its failure to adapt until there was external regulatory pressure.

    Download Info

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Bibliographic Info

    Paper provided by Faculty of Economics, University of Cambridge in its series Accounting and Finance Discussion Papers with number 00-af44.

    as in new window
    Length:
    Date of creation: Mar 2000
    Date of revision:
    Handle: RePEc:cam:camafp:00-af44

    Contact details of provider:
    Web page: http://www.econ.cam.ac.uk/index.htm

    Related research

    Keywords: Agency theory; Audit; Insurance; Lloyd's; Regulation;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:cam:camafp:00-af44. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Howard Cobb).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.