Keywords: Accounting Discretion, Earning Management, Internal Capital Market, Insurance, Loss Reserve Error
JEL classification: G34, G32; G22
학회소식
[2018년 제 2차] Internal Capital Markets and Loss Reserve Error Volatility
작성자 : 관리자
조회수 : 115
게시일 :
2018-06-26
A rich literature on property-liability insurer loss reserve has developed since the 1970s. Prior research provides evidence that insurers strategically manage earnings via loss reserves but has not incorporated the role of internal capital markets. This paper first examines firm characteristics and internal capital markets activity that are associated with firm and group loss reserve error volatility. Results indicate that insurers who are part of a group and have greater access to internal capital markets tend to have less volatility in their reserve errors than unaffiliated insurers which suggests that internal capital markets provide alternative means of managing insurer capital.
