EconPapers    
Economics at your fingertips  
 

Regulations, institutions and income smoothing by managing technical reserves: International evidence from the insurance industry

Chrysovalantis Gaganis (), Iftekhar Hasan () and Fotios Pasiouras

Omega, 2016, vol. 59, issue PA, 113-129

Abstract: This paper investigates the role of technical reserves in the income smoothing behavior of insurance companies. This is one of the first attempts in the literature to trace such relationship in the insurance industry, especially at a multi-country setting. The experience of 770 insurance firms operating in 87 countries over the period 2000–2009 reveals that there is a significant evidence of income smoothing. The paper also finds that institutional characteristics, e.g., the rule of law, common law legal origin, economic freedom, and regulations relating to technical provisions and supervisory power constrain income smoothing but other factors such as capital requirements, tax deductibility of provisions, auditing, and corporate governance do not have a significant effect.

Keywords: Earnings management; Income smoothing; Insurance; Technical reserves (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S030504831500119X
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Regulations, institutions and income smoothing by managing technical reserves: international evidence from the insurance industry (2015) Downloads
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:eee:jomega:v:59:y:2016:i:pa:p:113-129

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

DOI: 10.1016/j.omega.2015.05.010

Access Statistics for this article

Omega is currently edited by B. Lev

More articles in Omega from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2022-01-19
Handle: RePEc:eee:jomega:v:59:y:2016:i:pa:p:113-129