Study Data from University of Bath Update Knowledge of Finance (Risk Management and the Cost of Equity: Evidence From the United Kingdom’s Non-life Insurance Market): Business – Finance

2023 APR 17 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Policy and Law Daily -- Current study results on Business - Finance have been published. According to news reporting out of Avon, United Kingdom, by NewsRx editors, research stated, “We investigate the effect of risk management (reinsurance) on the corporate cost of equity using panel data drawn from the United Kingdom’s (UK) non-life insurance industry. Our results show that use of reinsurance lowers the cost of equity but that the relation is non-linear.”

Financial support for this research came from Willis Research Network.

Our news journalists obtained a quote from the research from the University of Bath, “We find that the rate of reduction declines as the level of premiums ceded relative to total gross premiums written increases. We also find that the reinsurance-cost of equity relation is moderated by the risk of financial distress/bankruptcy.”

According to the news editors, the research concluded: “This moderating relation is robust to the use of three alternative measures of financial distress and bankruptcy risk.”

This research has been peer-reviewed.

For more information on this research see: Risk Management and the Cost of Equity: Evidence From the United Kingdom’s Non-life Insurance Market. European Journal of Finance, 2022;28(6):551-570. European Journal of Finance can be contacted at: Routledge Journals, Taylor & Francis Ltd, 2-4 Park Square, Milton Park, Abingdon OX14 4RN, Oxon, England.

Our news journalists report that additional information may be obtained by contacting Mike Adams, University of Bath, School of Management, Bath, Avon, United Kingdom. Additional authors for this research include Vineet Upreti and Yihui Jia.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1080/1351847X.2021.1936588. 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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