https://scholars.lib.ntu.edu.tw/handle/123456789/414632
Title: | Market reaction to regulatory action in the insurance industry: The case of contingent commission | Authors: | Cheng, Jiang Elyasiani, Elyas TZU-TING LIN |
Issue Date: | 1-Jun-2010 | Publisher: | WILEY-BLACKWELL | Journal Volume: | 77 | Journal Issue: | 2 | Start page/Pages: | 347 | Source: | Journal of Risk and Insurance | Abstract: | We examine the market's reaction to New York Attorney General Eliot Spitzer's civil suit against mega-broker Marsh for bid rigging and inappropriate use of contingent commissions within a generalized autoregressive conditionally heteroskedastic (GARCH) framework. Effects on the stock returns of insurance brokers and insurers are tested. The findings are: (1) GARCH effects are significant in modeling broker/insurer returns; (2) the suit generated negative effects on the brokerage industry and individual brokers, suggesting that contagion dominates competitive effects; (3) spillover effects from the brokerage sector to insurance business are significant and mostly negative, demonstrating industry integration; and (4) information-based contagion is supported, as opposed to the pure-panic contagion. © The Journal of Risk and Insurance, 2009. |
URI: | https://scholars.lib.ntu.edu.tw/handle/123456789/414632 | ISSN: | 00224367 | DOI: | https://api.elsevier.com/content/abstract/scopus_id/77953697307 10.1111/j.1539-6975.2009.01327.x |
Appears in Collections: | 財務金融學系 |
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