Globalization, political institutions, financial liberalization, and performance of the insurance industry

Chien-Chiang Lee () and Chun-Wei Lin

The North American Journal of Economics and Finance, 2016, vol. 36, issue C, 244-266

Abstract: This paper investigates the impacts of globalization, political institutions, and financial liberalization on the performance and risk-taking of insurance firms covering 1324 individual firms in 30 selected OECD countries. We find that greater globalization and a stable political institution lead insurance companies to exhibit a better performance—i.e., insurers adjust their strategies while being aware of institutional changes. By contrast, financial liberalization has an inverse impact on insurance company performance. Thus, greater globalization and a stable political environment both drive less risk-taking for insurers. These findings are particularly important to insurance markets’ competitors and national policymakers.

Keywords: Insurance performance; Globalization; Political institutions; Financial liberalization; OECD (search for similar items in EconPapers)
JEL-codes: E44 G22 G32 P26 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecofin:v:36:y:2016:i:c:p:244-266

DOI: 10.1016/j.najef.2016.01.007

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