We investigate the relationship between risk taking of life-health (LH) insurers and stability of their institutional ownership within a simultaneous equation system model. Several results are obtained. First, stable institutional ownership of is associated with lower total risk of LH insurers,...

Permanent or long-term large shareholders have different governance incentives and mechanisms from institutional investors. Liquidity could facilitate either cutting and running by large shareholders or, alternatively, increased monitoring. Using an exogenous shock to liquidity in China, we...