IDEAS home Printed from https://ideas.repec.org/a/eee/corfin/v98y2026ics0929119926000192.html

Risk management and corporate lifecycles: Evidence from reinsurance purchases

Author

Listed:
  • Cole, Cassandra R.
  • Eastman, Evan M.

Abstract

Theory suggests that firms move through distinct lifecycle stages that are determined by internal and external factors. Empirical evidence indicates that firm behavior differs across lifecycle stages. Using a sample of financial firms, specifically insurance companies, and a cashflow-based measure of lifecycle stages, we examine how demand for risk management varies across the corporate lifecycle. Employing reinsurance as our proxy for risk management, our results suggest that demand for risk management differs across lifecycle stages, with firms using more reinsurance in the introduction, growth, shake-out, and decline stages. We also find evidence that there are observable differences in the relation between reinsurance use and lifecycle stages when considering external and internal reinsurance separately. Finally, when we jointly consider the impact of lifecycles and factors capturing the main theoretical motives for reinsurance use, we continue to observe differences in the relation between lifecycle stages and the demand for internal and external reinsurance.

Suggested Citation

  • Cole, Cassandra R. & Eastman, Evan M., 2026. "Risk management and corporate lifecycles: Evidence from reinsurance purchases," Journal of Corporate Finance, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:corfin:v:98:y:2026:i:c:s0929119926000192
    DOI: 10.1016/j.jcorpfin.2026.102961
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0929119926000192
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jcorpfin.2026.102961?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:corfin:v:98:y:2026:i:c:s0929119926000192. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jcorpfin .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.