IDEAS home Printed from https://ideas.repec.org/a/rom/econmn/v17y2014i2p304-317.html

Some searches may not work properly. We apologize for the inconvenience.

   My bibliography  Save this article

Catastrophe Bonds. From Structure to Strategy – A Cluster Analysis at European Level

Author

Listed:
  • Laura-Gabriela CONSTANTIN

    (Bucharest University of Economic Studies, Faculty of International Business and Economics, Romania)

Abstract

As a core activity and discipline of corporate management and corporate governance, risk management is, especially nowadays, a central part in pursuing the sustainable development desiderates, both from the perspective of the firm and of the society as a whole.Considering the negative impact natural catastrophes have on the companies’ and countries’ competitiveness, the development of sustainable financial products that make a contribution to transferring the risk and allocating the capital in case of disasters stands for a continual preoccupation, especially for the (re)insurance industry, while the study of catastrophe bonds – insurance-linked securities – is of interest in the specialized literature. In this context, the scope of the present research is to expand the empirical studies within this field while examining the link between the structure of the catastrophe bonds and the risk management approach employed while accessing the capital markets through this transactions.The methodology entailed clustering a selection of transactions developed by European cedents based on the size of each issue and correlating the results with an innovative score, developed to encompass several important catastrophe bonds structural components.The findings reflect that the general structural elements of the financial transactions reflect closely the corporate approach regarding the innovative risk intermediation instruments for the examined catastrophe bonds deals. The outcomes also emphasize, as expected, that companies with a stronger presence on this market seem to have a more sophisticated risk management approach.

Suggested Citation

  • Laura-Gabriela CONSTANTIN, 2014. "Catastrophe Bonds. From Structure to Strategy – A Cluster Analysis at European Level," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 17(2), pages 304-317, December.
    • Handle: RePEc:rom:econmn:v:17:y:2014:i:2:p:304-317
    as

    Download full text from publisher

    File URL: https://www.management.ase.ro/reveconomia/2014-2/9.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marko Sarstedt & Erik Mooi, 2014. "The Market Research Process," Springer Texts in Business and Economics, in: A Concise Guide to Market Research, edition 2, chapter 2, pages 11-23, Springer.
    2. J. David Cummins & Mary A. Weiss, 2009. "Convergence of Insurance and Financial Markets: Hybrid and Securitized Risk‐Transfer Solutions," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 76(3), pages 493-545, September.
    3. Cummins, J. David & Doherty, Neil & Lo, Anita, 2002. "Can insurers pay for the "big one"? Measuring the capacity of the insurance market to respond to catastrophic losses," Journal of Banking & Finance, Elsevier, vol. 26(2-3), pages 557-583, March.
    4. J. David Cummins, 2008. "CAT Bonds and Other Risk‐Linked Securities: State of the Market and Recent Developments," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 11(1), pages 23-47, March.
    5. Marko Sarstedt & Erik Mooi, 2014. "A Concise Guide to Market Research," Springer Texts in Business and Economics, Springer, edition 2, number 978-3-642-53965-7, September.
    6. Tristan Nguyen & Joerg Lindenmeier, 2014. "Catastrophe risks, cat bonds and innovation resistance," Qualitative Research in Financial Markets, Emerald Group Publishing Limited, vol. 6(1), pages 75-92, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liliana Nicoleta Simionescu, 2015. "The Gender Differences Effects On Corporate Social Responsibility (Csr)," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 170-175, June.
    2. Irina-Eugenia Iamandi & Sebastian Mădălin Munteanu, 2014. "Corporate Social Responsibility through Education and Sport. An EU Comparative Case," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 17(54), pages 73-97, December.
    3. Loris Lino Maria Nadotti & Laura-Gabriela Constantin, 2014. "Catastrophe Bonds Structures at European Level – A Cluster Analysis Approach," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 17(54), pages 115-141, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Patricia H. Born & Barbara Klimaszewski-Blettner, 2013. "Should I Stay or Should I Go? The Impact of Natural Disasters and Regulation on U.S. Property Insurers’ Supply Decisions," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 80(1), pages 1-36, March.
    2. Sabine Lemoyne de Forges & Ruben Bibas & Stéphane Hallegatte, 2001. "A dynamic model of extreme risk coverage : Resilience and e fficiency in the global reinsurance market," CIRED Working Papers halshs-00800460, HAL.
    3. Meldrick Arjay A. Magsino & Reynold S. Beredo & Arex A. Anza, 2014. "The Motivational Effects of LPU Awards of Excellence: Basis for Improvement," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(12), pages 371-397, December.
    4. Ben Ammar, Semir & Eling, Martin & Milidonis, Andreas, 2015. "Asset Pricing of Financial Insitutions: The Cross-Section of Expected Stock Returns in the Property/Liability Insurance Industry," Working Papers on Finance 1516, University of St. Gallen, School of Finance.
    5. Georges Dionne & Denise Desjardins, 2022. "A re‐examination of the US insurance market's capacity to pay catastrophe losses," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 25(4), pages 515-549, December.
    6. Marc Dressler & Ivan Paunovic, 2021. "Not All Wine Businesses Are the Same: Examining the Impact of Winery Business Model Extensions on the Size of Its Core Business," Sustainability, MDPI, vol. 13(18), pages 1-16, September.
    7. Barrieu, Pauline & Loubergé, Henri, 2013. "Reinsurance and securitisation of life insurance risk: The impact of regulatory constraints," Insurance: Mathematics and Economics, Elsevier, vol. 52(2), pages 135-144.
    8. Schlägel, Christopher & Sarstedt, Marko, 2016. "Assessing the measurement invariance of the four-dimensional cultural intelligence scale across countries: A composite model approach," European Management Journal, Elsevier, vol. 34(6), pages 633-649.
    9. Tae Kyung Yoon & SoEun Ahn, 2020. "Clustering Koreans’ Environmental Awareness and Attitudes into Seven Groups: Environmentalists, Dissatisfieds, Inactivators, Bystanders, Honeybees, Optimists, and Moderates," Sustainability, MDPI, vol. 12(20), pages 1-18, October.
    10. Cheng, John W. & Mitomo, Hitoshi, 2016. "Effects of ICT and media information on collective resilience after disasters – from a virtual crowd to a psychological crowd – Part 1 - ICT and media information and collective resilience in an emerg," 27th European Regional ITS Conference, Cambridge (UK) 2016 148663, International Telecommunications Society (ITS).
    11. Ali, Fazilatulaili & Dissanayake, Dilum & Bell, Margaret & Farrow, Malcolm, 2018. "Investigating car users' attitudes to climate change using multiple correspondence analysis," Journal of Transport Geography, Elsevier, vol. 72(C), pages 237-247.
    12. Yelena Popova & Sergejs Popovs, 2022. "Impact of Smart Economy on Smart Areas and Mediation Effect of National Economy," Sustainability, MDPI, vol. 14(5), pages 1-19, February.
    13. Muhammad A. Saleem & Hina Ismail & Rao Akmal Ali, 2021. "Actions Speak Louder than Words: Investigating the Interplay between Descriptive and Injunctive Norms to Promote Alternative Fuel Vehicles," Sustainability, MDPI, vol. 13(17), pages 1-17, August.
    14. Todorović Jadranka Đurović & Đorđević Marina & Krstić Marko, 2020. "The Impact of Corporate Income Tax on Gross Domestic Product - The Case of the Republic of Serbia," Economic Themes, Sciendo, vol. 58(3), pages 311-326, September.
    15. Alexander Braun, 2016. "Pricing in the Primary Market for Cat Bonds: New Empirical Evidence," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 83(4), pages 811-847, December.
    16. Marc Dressler & Ivan Paunovic, 2021. "A Typology of Winery SME Brand Strategies with Implications for Sustainability Communication and Co-Creation," Sustainability, MDPI, vol. 13(2), pages 1-17, January.
    17. Sebastian Ion Ceptureanu & Eduard Gabriel Ceptureanu & Doina Popescu & Olguta Anca Orzan, 2020. "Eco-innovation Capability and Sustainability Driven Innovation Practices in Romanian SMEs," Sustainability, MDPI, vol. 12(17), pages 1-18, August.
    18. Nitzl, Christian, 2016. "The use of partial least squares structural equation modelling (PLS-SEM) in management accounting research: Directions for future theory development," Journal of Accounting Literature, Elsevier, vol. 37(C), pages 19-35.
    19. Eckhard Platen & David Taylor, 2016. "Loading Pricing of Catastrophe Bonds and Other Long-Dated, Insurance-Type Contracts," Papers 1610.09875, arXiv.org.
    20. Nektarios Milton, 2011. "A Catastrophe Insurance System for the European Union," Asia-Pacific Journal of Risk and Insurance, De Gruyter, vol. 5(2), pages 1-22, July.

    More about this item

    Keywords

    catastrophe (cat) bond; cluster analysis; risk management; sustainable development.;
    All these keywords.

    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

    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:rom:econmn:v:17:y:2014:i:2:p:304-317. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc 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 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: Ciocoiu Nadia Carmen (email available below). General contact details of provider: https://edirc.repec.org/data/mnasero.html .

    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.