Cheng, JiangJiangChengElyasiani, ElyasElyasElyasianiTZU-TING LIN2019-07-232019-07-232010-06-0100224367https://scholars.lib.ntu.edu.tw/handle/123456789/414632We 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.journal articlehttps://api.elsevier.com/content/abstract/scopus_id/7795369730710.1111/j.1539-6975.2009.01327.x2-s2.0-77953697307WOS:000277328400004https://api.elsevier.com/content/abstract/scopus_id/77953697307