Why do small and medium enterprises (SMEs) demand property liability insurance?

Yoshihiro Asai

Journal of Banking & Finance, 2019, vol. 106, issue C, 298-304

Abstract: Several empirical articles have attempted to clarify the insurance demands of listed firms, but few have sought to analyze small and medium enterprises’ (SMEs) demands because of the unavailability of adequate data. In this study, I analyze SMEs’ insurance demand by using a corporate survey and find the following. First, SMEs with relatively weak relationships with their main banks tend to demand more insurance. Second, SMEs with higher tax incentives tend to demand more insurance. Third, SMEs with a higher probability of bankruptcy tend to demand less insurance.

Keywords: Insurance demand; SMEs (small and medium-sized enterprises); Bank relationship; Questionnaire methods (search for similar items in EconPapers)
JEL-codes: G21 G22 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:106:y:2019:i:c:p:298-304

DOI: 10.1016/j.jbankfin.2019.07.012

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