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Hybrid bond issuances by insurance firms

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  • Ryu, Doojin
  • Yu, Jinyoung

Abstract

This study reexamines the determinants of insurance firms' hybrid bond issuances. We also analyze the effects of these issuances on their issuers' financial solvency and performance. Logistic regression reveals that the likelihood of issuing a hybrid bond increases when the risk-based capital ratio is lower and when net income is greater. Additionally, difference-in-differences estimations with fixed effects show that hybrid bond issuances enhance insurance firms' insolvency risk and liquidity ratio but do not significantly improve overall financial solvency indices. The insolvency risk is mitigated when the bonds are issued to foreign creditors.

Suggested Citation

  • Ryu, Doojin & Yu, Jinyoung, 2020. "Hybrid bond issuances by insurance firms," Emerging Markets Review, Elsevier, vol. 45(C).
    • Handle: RePEc:eee:ememar:v:45:y:2020:i:c:s156601412030203x
    DOI: 10.1016/j.ememar.2020.100722
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    Cited by:

    1. Chung, Hae Jin & Jhang, Hogyu & Ryu, Doojin, 2023. "Impacts of COVID-19 pandemic on corporate cash holdings: Evidence from Korea," Emerging Markets Review, Elsevier, vol. 56(C).
    2. Song Joonhyuk & Ryu Doojin, 2021. "Houses as Collateral and Household Debt Deleveraging in Korea," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 15(1), pages 3-27, January.
    3. Karam KIM & Doojin RYU, 2020. "Predictive ability of investor sentiment for the stock market," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 33-46, December.
    4. Daehyeon PARK & Doojin RYU, 2021. "Forecasting Stock Market Dynamics using Bidirectional Long Short-Term Memory," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 22-34, June.
    5. Keke Bai & Farid Ullah & Muhammad Arif & Sahar Erfanian & Saima Urooge, 2023. "Stakeholder-Centered Corporate Governance and Corporate Sustainable Development: Evidence from CSR Practices in the Top Companies by Market Capitalization at Shanghai Stock Exchange of China," Sustainability, MDPI, vol. 15(4), pages 1-25, February.

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