Muhammed Altuntas and Jannes Rauch
This paper aims to examine the effect of concentration in the insurance sector on insurer stability for a large set of developed and developing countries. In particular, the…
Abstract
Purpose
This paper aims to examine the effect of concentration in the insurance sector on insurer stability for a large set of developed and developing countries. In particular, the authors test whether concentration reduces financial fragility in the insurance sector (“concentration-stability view”) or decreases stability in the insurance sector (“concentration-fragility view”).
Design/methodology/approach
The authors use a data set of 14,402 firm-year observations of property-liability insurers who appear in A.M. Best’s Statement File Global database during the period 2004-2012. They use regression analyses to examine the effect of concentration on the stability of insurance firms and apply different measures of concentration.
Findings
The results provide empirical support for the “concentration- fragility view”; that is, higher levels of concentration are associated with decreases in the insurance sector’s financial stability.
Research limitations/implications
The results have important policy implications, given that a primary purpose of insurance regulation is to protect policyholders against insurance firm defaults.
Originality/value
No previous research analyzes how recent trends in competition and consolidation, which have led to changes in insurance market concentration, affect the stability of insurance firms around the world. This research is the first paper that provides evidence on the relation between concentration and stability in the insurance sector.
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Martin F. Grace, Jannes Rauch and Sabine Wende
The authors aim to analyze the impact of monetary policy interventions during the financial crisis of 2007-2009 on the stock prices of US insurance firms.
Abstract
Purpose
The authors aim to analyze the impact of monetary policy interventions during the financial crisis of 2007-2009 on the stock prices of US insurance firms.
Design/methodology/approach
The authors use an event study methodology and a database of 89 policy announcements to analyze if monetary policy interventions could restore stability in the insurance sector. In addition, the authors conduct a second-stage analysis to identify the individual firms’ determinants of their stock market response.
Findings
The results indicate that the market reaction depends upon the type of policy intervention as well as the timing of the intervention. A second stage analysis examines firm level determinants of the insurers’ stock price responses and finds various firm specific factors also affect the insurers’ reaction to policy interventions.
Originality/value
First, to the best of the authors’ knowledge, this paper is the first to examine the impact of non-conventional policy announcements on firms from the insurance sector during the financial crisis. Moreover, the authors add to the literature an analysis on how conventional central bank announcements affect insurance firms.
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Martin R.W. Hiebl, Rainer Baule, Andreas Dutzi, Volker Stein and Arnd Wiedemann
Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some…
Abstract
Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.
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Lara Agostini and Roberto Filippini
Currently, the expectancy that surrounds the Fourth Industrial Revolution, commonly referred to as Industry 4.0 (I4.0), is huge. In this context, the purpose of this paper is to…
Abstract
Purpose
Currently, the expectancy that surrounds the Fourth Industrial Revolution, commonly referred to as Industry 4.0 (I4.0), is huge. In this context, the purpose of this paper is to unveil whether and how organizational and managerial practices are associated to different levels of adoption of I4.0 technologies.
Design/methodology/approach
To reach this aim, the authors carried out a survey involving Italian manufacturing firms. Then, the authors used a cluster analysis and t-test to analyze data.
Findings
Results show that two clusters of firms based on their level of adoption of I4.0 technologies (high vs low) can be identified. Then, using a t-test, the authors found statistically significant higher levels of a number of organizational and managerial practices for firms with a higher level of adoption of I4.0 technologies.
Practical implications
This paper contributes to the debate surrounding I4.0 by stressing the organizational and managerial challenges that firms willing to undertake an I4.0 transformation have to face, which goes beyond the sole application of I4.0 technologies.
Social implications
Entrepreneurs and managers need to be aware that the path toward I4.0 requires not only focusing on the application of the I4.0 technologies, but also on the development of a series of organizational and managerial practices that become key to face the fourth Industrial Revolution.
Originality/value
The authors posit here that I4.0 requires firms to bridge the capability gap, as well as overcome cultural barriers preventing entrepreneurs and managers to change their way of doing business. To this regard, this study highlights I4.0 is an all-encompassing paradigm that involves many dimensions of the firm.