Investigators from University of Iowa Have Reported New Data on Operations Science (Enterprise risk management and economies of scale and scope: evidence from the German insurance industry)

2019 NOV 20 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- New research on Science - Operations Science is the subject of a report. According to news originating from Iowa City, Iowa, by NewsRx correspondents, research stated, “Enterprise risk management (ERM) is the approach of managing all risks faced by an enterprise in an integrated, holistic fashion. This research investigates whether the utilization of the ERM approach helps firms achieve economies of scale and scope.”

Our news journalists obtained a quote from the research from the University of Iowa, “We use detailed survey data of German property-liability insurance companies that allows us to construct continuous measures of ERM quality. We find that ERM quality positively moderates the size-scale efficiency relationship, and we find that ERM positively moderates the diversification-revenue scope efficiency relationship, indicating that ERM facilitates economies of scale and economies of scope with respect to revenue complementarities. We do not find any evidence of economies of scope with respect to cost complementarities.”

According to the news editors, the research concluded: “Our results suggest that ERM’s impact on economies of scale and scope is one answer to the question of how ERM can create value.”

For more information on this research see: Enterprise risk management and economies of scale and scope: evidence from the German insurance industry. Annals of Operations Research, 2019;():. Annals of Operations Research can be contacted at: Springer, Van Godewijckstraat 30, 3311 Gz Dordrecht, Netherlands. (Springer - www.springer.com; Annals of Operations Research - http://www.springerlink.com/content/0254-5330/)

The news correspondents report that additional information may be obtained from T.R. Berry-Stolzle, University of Iowa, Henry B Tippie Coll Business, 108 John Pappajohn Business Bldg, Iowa City, IA 52242, United States. Additional authors for this research include M. Altuntas and J.D. Cummins.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1007/s10479-019-03393-x. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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