IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

The Market Impact of the Financial Services Modernization Act of 1999: Differences Between Life Insurers and Property-Liability Insurers

Listed author(s):
  • David Martlett
  • Carl Pacini
  • William Hillison
Registered author(s):

    Recent research has examined the effect of the passage of the Financial Services Modernization Act of 1999, more commonly known as the Gramm-Leach- Bliley Act, on the market value of insurers, commercial banks, securities firms, thrifts, and finance companies. This study differs from previous research in that it examines life insurers and property-liability insurers as separate industries rather than treating them as a single industry. This study also analyzes trading volume in addition to share price reactions. Finally, this study features two variables in a cross-sectional analysis of insurer stock returns not considered in prior research. … Using a generalized least squares portfolio approach and Corrado’s rank statistic, we find significant share price reactions to certain legislative announcements surrounding the passage of the GLB. Trading volume reactions corroborate the significant share price reactions. Our results indicate that life insurers and property-liability insurers reacted differently to enactment of the GLB. Smaller life insurers with high liquidity and high leverage had the most positive (or least negative) share price reactions of all insurers.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by Western Risk and Insurance Association in its journal Journal of Insurance Issues.

    Volume (Year): 26 (2003)
    Issue (Month): 2 ()
    Pages: 69-92

    in new window

    Handle: RePEc:wri:journl:v:26:y:2003:i:2:p:69-92
    Contact details of provider:

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

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

    When requesting a correction, please mention this item's handle: RePEc:wri:journl:v:26:y:2003:i:2:p:69-92. 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: (James Barrese)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.