Journal article
The Effect of Proposition 103 on Insurers: Evidence from the Capital Market
The Journal of risk and insurance, v 57(4), pp 671-681
01 Dec 1990
Abstract
In May 1989, the California Supreme Court upheld Proposition 103, an insurance reform measure mandating large cuts in property-liability insurance rates. However, the court also ruled that the regulation proposed by Proposition 103 may not deny insurers an adequate return. This study examines the effect of Proposition 103 on the common stock values of property-liability insurers around both the passage of the measure in the 1988 election and the court decision in 1989. The results indicate that the capital market believed Proposition 103 to be an unfavorable development for insurers.
Metrics
9 Record Views
Details
- Title
- The Effect of Proposition 103 on Insurers: Evidence from the Capital Market
- Creators
- Samuel SzewczykRaj Varma
- Publication Details
- The Journal of risk and insurance, v 57(4), pp 671-681
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Finance
- Web of Science ID
- WOS:A1990ER43400009
- Other Identifier
- 991019184040604721
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Business, Finance
- Economics