Regulatory penalties and the growth of the insurance companies: Empirical evidence from China

Ning Zhang, Yabei Li and Hao Li

Finance Research Letters, 2025, vol. 75, issue C

Abstract: Our analysis imposed on Chinese insurance firms from 2009 to 2022 reveals that penalties from the National Financial Regulatory Administration adversely affect the growth of these insurance companies. The imposition of administrative penalties markedly influences the growth of state-owned insurance firms, whereas the growth of non-state-owned firms exhibits insignificance. Moreover, while cumulative violations attributed to both institution and staff significantly impact the companies’ growth, the total fines levied against the staff appear to insignificant influence firms’ growth. Lastly, administrative penalties influence the growth of insurance companies by diminishing their premium income and increasing the odds of improving business evaluation ratings.

Keywords: Regulatory penalties; Insurance companies; Company growth; Premium income; Business evaluation ratings (search for similar items in EconPapers)
JEL-codes: G22 G28 K23 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:75:y:2025:i:c:s1544612325000297

DOI: 10.1016/j.frl.2025.106764

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