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Global Impact of the Gramm-Leach-Bliley Act: Evidence from Insurance Industries of Developed Countries

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  • M. Kabir Hassan
  • Abdullah Mamun

Abstract

This paper investigates the impact of the Gramm-Leach-Bliley Act (GLBA) on the insurance industries of developed countries. We find that the insurance industries of most of the developed countries in our sample have significant negative spillover effects from the GLBA. Further, we find that the impact of this deregulation on the insurance industries of any two countries is not same. After controlling for country-specific effect, we find that profitability can explain the impact of the GLBA on non-U.S. insurance companies. This result is robust whether we use ordinary least squares or bootstrap as the estimation technique. However, we do not find any evidence demonstrating that the impact of the GLBA is statistically different for firms that are from European Union member countries versus those that are not.

Suggested Citation

  • M. Kabir Hassan & Abdullah Mamun, 2009. "Global Impact of the Gramm-Leach-Bliley Act: Evidence from Insurance Industries of Developed Countries," NFI Working Papers 2009-WP-13, Indiana State University, Scott College of Business, Networks Financial Institute.
    • Handle: RePEc:nfi:nfiwps:2009-wp-13
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    Cited by:

    1. John A. Tatom & Terrie Troxel, 2011. "A Report to the Federal Insurance Office," NFI Policy Briefs 2011-PB-07, Indiana State University, Scott College of Business, Networks Financial Institute.

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    More about this item

    Keywords

    Gramm-Leach-Bliley Act; Wealth Effect; Policy Implications; Insurance Industry;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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