D'Arcy, Stephen P; Lwin, Teresa - In: The Geneva Papers on Risk and Insurance - Issues and … 37 (2012) 3, pp. 509-538
Traditional finance studies have found that firm value is maximised at a mid-range level of leverage. This paper empirically tests the effect of leverage on firm value for property-liability insurers. We analysed an international data set of 96 insurers from 1992 to 2006 using two measures for...