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美國產險業
CEO
更迭與再保險需求
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minus affiliated reinsurance ratio of year -1, and ∆Reins_nonaff_ratio is defined as the
difference in the value of non-affiliated reinsurance ratio of each year minus non-affiliated
reinsurance ratio of year -1, respectively. Re
ins
_
ratio
i,t
(total reinsurance ratio) is measured
as the ratio of reinsurance ceded divided by the sum of direct premiums written and
reinsurance assumed (e.g., Mayers and Smith, 1990; Garven and Lamm-Tennant, 2003; Cole
and McCullough, 2006; Cummins et al., 2008
20
). Re
ins
_
aff_ratio
i,t
(affiliated reinsurance
ratio) is measured as the ratio of affiliated reinsurance ceded divided by the sum of direct
premiums written plus reinsurance assumed. Re
ins
_
nonaff_ratio
i,t
(non-affiliated reinsurance
ratio) is measured as the ratio of non-affiliated reinsurance ceded divided by the sum of
direct premiums written plus reinsurance assumed.
3.3.2 Independent Variables
We classified independent variables into two categories: major independent variables
and control variables. The major independent variable of interest is the CEO turnover. We
separate CEO turnover event into two types: routine CEO and non-routine CEO turnover, or
forced CEO and voluntary CEO turnover. The others independent variables of interest
include organizational structure and corporate governance variables. We also use changes in
some independent variables and control variables (e.g., board size, independent director, firm
size) because the dependent variable is changes in reinsurance demand. For other
independent variables and control variables, we lag these variables one year if a variable is a
dummy variable (such as mutual, duality, Big 4 auditor, and group). “∆
x
” means change in
independent variable or control variable
x
, which specifically sugggets that ∆
x
i,t
means
x
i,t
minus
x
i,t
-1
. For example, ∆
Boardsize
i,t
means
Boardsize
i,t
minus
Boardsize
i,t
-1
. Finally,
d
i,t
is the
time fixed-effects for year
t,
f
i,t
is the firm fixed-effects for insurer
i
, and
u
i,t
is the error term.
3.3.3 CEO Turnover Variables
CEO turnover information obtained from the “Management” section of
Best’s Insurance
Reports
21
is how we identify CEO turnover events. If there are any change in CEO names
between two consecutive years (
t
–1 and
t
), we define a CEO turnover event in the
t
th
year.
20 Cummins et al. (2008) suggests that reinsurance ratio is defined only as the premiums ceded to non-
affiliated reinsurers. In addition, an alternative measure of reinsurance is share of written premiums ceded
to non-affiliated reinsurers.
21 Best’s Insurance Reports and proxy statements have the means of company officers with following titles:
Chairman of the Board, President, CEO, Senior Vice President, Secretary, CFO, Vice President and
Treasurer. All companies in our sample have at least one of the three titles: CEO, President, or Chairman
of the Board.