Economics at your fingertips  

Insurer risk and performance before, during, and after the 2008 financial crisis: The role of monitoring institutional ownership

Yu‐Luen Ma and Yayuan Ren

Journal of Risk & Insurance, 2021, vol. 88, issue 2, 351-380

Abstract: This study examines the relationship between institutional ownership and insurers' risk and performance before, during, and after the 2008 financial crisis. Monitoring institutional investors are defined as those that have (a) a long‐term investment horizon, (b) large holdings in the investee firm, (c) independence from management, and (d) a large portion of their portfolio invested in the firm. We measure both the level and persistence of monitoring institutional ownership and find a negative relationship between monitoring institutional ownership and an insurer's stock stability and performance during the crisis. Further examination reveals that these firms took more risk before the crisis. Whereas many monitoring institutions exited the insurance market after the crisis, evidence suggests that the remaining institutional investors in the postcrisis period have a longer investment horizon and are active in monitoring and risk management.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)

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:

Ordering information: This journal article can be ordered from

Access Statistics for this article

Journal of Risk & Insurance is currently edited by Joan T. Schmit

More articles in Journal of Risk & Insurance from The American Risk and Insurance Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2022-02-19
Handle: RePEc:bla:jrinsu:v:88:y:2021:i:2:p:351-380