教師資料查詢 | 類別: 期刊論文 | 教師: 何佳玲 HO, CHIA-LING (瀏覽個人網頁)

標題:Liquidity transformation: an examination of US life insurers
學年105
學期1
出版(發表)日期2016/11/30
作品名稱Liquidity transformation: an examination of US life insurers
作品名稱(其他語言)
著者Chia-Ling Ho
單位
出版者
著錄名稱、卷期、頁數Managerial Finance 42(7), p.618-634
摘要Purpose
– The purpose of this paper is twofold: first, this paper measures how much liquidity is transformed by the US life insurance industry for the sample period; and Second, this study tests the “risk absorption” hypothesis and “financial fragility-crowding out” hypothesis to identify the impact of capital on liquidity creation in the US life insurance industry. In addition, a regression model is conducted to explore the relationship between liquidity creation and other firm characteristics.

Design/methodology/approach
– In order to construct the liquidity creation measures, all assets and liabilities are classified as liquid, semi-liquid, or illiquid with appropriate weights to these classifications, which will then be combined to measure the amount of liquidity creation. In addition, a regression model is analyzed. The level of insurers’ liquidity creation is regressed on the capital ratio (surplus over total assets) and other financial and organizational variables to test two prevailing hypotheses.

Findings
– This paper finds that the US life insurers de-create liquidity. The authors provide that the amount of liquidity de-creation is related to the size of insurers such that liquidity de-creation has increased as assets grow and that large insurers de-create most of liquidity. The US life insurance industry de-created $2.1 trillion in liquidity, i.e., 43 percent of total industry assets, in 2008. The empirical results support the “financial fragility-crowding out” hypothesis. Life insurers’ liquidity de-creation is mainly caused by the large portion of liquid assets, which is required by regulation and capital is not a main factor of liquidity de-creation.

Originality/value
– There is no known study on the issue of liquidity creation by life insurers. Thus, the extent of liquidity creation by the life insurance industry, if any, is an empirical matter to investigate, but also an important matter to regulators and the academia since the products and business operations (e.g. asset portfolio and asset and liability management) of life insurers are different from those of property and liability insurers.
關鍵字Equity capital;Liquidity risk;Life insurer;Liquidity creation
語言英文
ISSN0307-4358
期刊性質國外
收錄於
產學合作
通訊作者
審稿制度
國別英國
公開徵稿
出版型式,電子版,紙本
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