This paper examines the effect of rate regulation on the management of the property-liability insurer loss reserve. The political cost hypothesis predicts that managers make accounting choices to reduce wealth transfers resulting from the regulatory process. Managers may under-state reserves to...

This paper investigates how accounting rule reform affects the usage of conditional conservatism in the property-liability (P&L) insurance industry. More specifically, whether the accounting rule changes that strengthen the internal control over financial reporting and improve the financial...