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Article: Corporate Risks and Property Insurance: Evidence From the People's Republic of China

TitleCorporate Risks and Property Insurance: Evidence From the People's Republic of China
Authors
Issue Date2003
Citation
Journal Of Risk And Insurance, 2003, v. 70 n. 2, p. 289-314 How to Cite?
AbstractUsing panel data (1997-1999) for 235 publicly listed companies in the People's Republic of China, this study empirically tests the linkage between corporate risks and the decision to purchase property insurance and its financial extent. To achieve these objectives, we first estimate a probit insurance participation decision model and then a fixed-effects insurance volume decision model with Heckman's sample selection correction. Our results indicate that the managerial decision to purchase property insurance is positively related to company size and insolvency risks. By contrast, the amount of property insurance purchased is positively related to systematic risks but negatively related to insolvency and unsystematic risks and company size. We find that the amount of property insurance used by Chinese companies can also be affected by other factors (e.g., the cash flow constraints). In addition, the decision to purchase property insurance and the financial extent to which it is used varies among Chinese companies according to their geographical location. However, state ownership does not appear to be an important determinant of the purchase of property insurance by Chinese publicly listed companies.
Persistent Identifierhttp://hdl.handle.net/10722/188449
ISSN
2015 Impact Factor: 1.535
2015 SCImago Journal Rankings: 1.489
References

 

DC FieldValueLanguage
dc.contributor.authorZou, Hen_US
dc.contributor.authorAdams, MBen_US
dc.contributor.authorBuckle, MJen_US
dc.date.accessioned2013-09-03T04:07:36Z-
dc.date.available2013-09-03T04:07:36Z-
dc.date.issued2003en_US
dc.identifier.citationJournal Of Risk And Insurance, 2003, v. 70 n. 2, p. 289-314en_US
dc.identifier.issn0022-4367en_US
dc.identifier.urihttp://hdl.handle.net/10722/188449-
dc.description.abstractUsing panel data (1997-1999) for 235 publicly listed companies in the People's Republic of China, this study empirically tests the linkage between corporate risks and the decision to purchase property insurance and its financial extent. To achieve these objectives, we first estimate a probit insurance participation decision model and then a fixed-effects insurance volume decision model with Heckman's sample selection correction. Our results indicate that the managerial decision to purchase property insurance is positively related to company size and insolvency risks. By contrast, the amount of property insurance purchased is positively related to systematic risks but negatively related to insolvency and unsystematic risks and company size. We find that the amount of property insurance used by Chinese companies can also be affected by other factors (e.g., the cash flow constraints). In addition, the decision to purchase property insurance and the financial extent to which it is used varies among Chinese companies according to their geographical location. However, state ownership does not appear to be an important determinant of the purchase of property insurance by Chinese publicly listed companies.en_US
dc.languageengen_US
dc.relation.ispartofJournal of Risk and Insuranceen_US
dc.titleCorporate Risks and Property Insurance: Evidence From the People's Republic of Chinaen_US
dc.typeArticleen_US
dc.identifier.emailZou, H: hongzou@hku.hken_US
dc.identifier.authorityZou, H=rp01800en_US
dc.description.naturelink_to_subscribed_fulltexten_US
dc.identifier.doi10.1111/1539-6975.00061-
dc.identifier.scopuseid_2-s2.0-0242330731en_US
dc.relation.referenceshttp://www.scopus.com/mlt/select.url?eid=2-s2.0-0242330731&selection=ref&src=s&origin=recordpageen_US
dc.identifier.volume70en_US
dc.identifier.issue2en_US
dc.identifier.spage289en_US
dc.identifier.epage314en_US
dc.publisher.placeUnited Statesen_US
dc.identifier.scopusauthoridZou, H=12769328900en_US
dc.identifier.scopusauthoridAdams, MB=7403905632en_US
dc.identifier.scopusauthoridBuckle, MJ=14047955900en_US

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