The U.S. Property and Liability Insurance Industry: Firm Growth, Size, and Age
Byeongyong Paul Choi
Risk Management and Insurance Review, 2010, vol. 13, issue 2, 207-224
Abstract:
The relationship between firm size, age, and growth is tested for the U.S. property and liability (P‐L) insurance industry, and the determinants of firm characteristics on firm growth are analyzed. Using Heckman's two‐stage methodology, this article examines the relationship between corporate growth and firm size. The relationship between firm growth and firm age is also investigated. Furthermore, to determine time‐varying effects, the analysis is conducted for the different subperiods. The results of this article strongly support Gibrat's Law in the U.S. P‐L insurance market for the testing periods. The results are consistent for longer time periods and for shorter subperiods. It also finds that young firms grow faster than old firms during the sample periods. Related to the determinants of firm characteristics on firm growth, insurers using less input cost tend to grow fast. Economies of scope are positively related to firm growth as well.
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)
Downloads: (external link)
https://doi.org/10.1111/j.1540-6296.2010.01181.x
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:bla:rmgtin:v:13:y:2010:i:2:p:207-224
Access Statistics for this article
Risk Management and Insurance Review is currently edited by Mary A. Weiss
More articles in Risk Management and Insurance Review from American Risk and Insurance Association
Bibliographic data for series maintained by Wiley Content Delivery ().