The paper presents a model of shareholders' decision to purchase Directors' and Officers' (D&O) insurance for their directors. We consider the tradeoff between the “Governance Enhancing Effect” and the moral hazard effect of D&O insurance and focus on the role of information in determining...

This study examines empirically how risk management, financial management, and capital management are related to each other in the property/liability insurance industry, thereby reflecting interactions in managerial decisions such as the choice of derivatives and reinsurance use, the allocation...

Underwriting and investment are two important and related business activities of insurance companies. However, studies on the interrelation between underwriting and investment risks of Property-Liability (P-L) insurance companies are sparse in the literature. Using a sample of U.S. P-L insurers,...

This article examines the effect of organizational forms on corporate dividend decisions by exploring the differences in dividend payout ratios between mutual and stock property-liability (P-L) insurers in the U.S. Our large sample evidence suggests: a) mutual insurers tend to have a lower...