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臺大管理論叢
第
27
卷第
2S
期
273
ratio is weakened for mutual insurers. One possible reason is that new CEOs of mutual
insurers from non-routine CEO turnover have higher risk-taking behavior than stock
insurers. On average, mutual insurers with non-routine CEO turnover may attempt to save
reinsurance costs. The interaction term between routine CEO turnover and reinsurance
demand is not statistically significant.
Table 7 Regressions of Reinsurance Demand on Routine CEO, Non-Routine CEO
vs. Non CEO Turnover with Interaction Effect of Organizational Structure
Dependent variables
∆
Reins ratio
∆
Reins_aff_ratio
∆
Reins_nonaff_ratio
Independent Variables
Estimate P value Estimate P value Estimate P value
Routine CEO (t-1)
0.028
0.273
0.033
0.210 -0.005
0.620
Routine CEO (t-1)
×
Mutual (t-1)
-0.053
0.352 -0.048
0.408 -0.005
0.804
Non-Routine CEO (t-1)
0.083*** 0.000
0.058**
0.015
0.025*** 0.003
Non-Routine CEO (t-1)
×
Mutual (t-1) -0.078*
0.055 -0.068*
0.099 -0.010
0.503
Mutual (t-1)
0.021
0.759
0.038
0.577 -0.018
0.474
Duality (t-1)
-0.048**
0.011
-0.039**
0.041 -0.009
0.186
∆ Board size
0.000
0.918
0.000
0.998
0.000
0.771
∆ Independent director
0.032
0.436 -0.001
0.980
0.033**
0.026
Big 4 auditor (t-1)
0.006
0.766 -0.002
0.941
0.008
0.301
∆ Ln(na)
-0.275*** 0.000 -0.288*** 0.000
0.013
0.391
∆ Herfindahl
0.023
0.788
0.071
0.420 -0.048
0.128
∆ Geoherfindahl
-0.485*** 0.000 -0.495*** 0.000
0.010
0.786
∆ Leverage
0.035
0.761 -0.171
0.149
0.206*** 0.000
∆ Underwriting risk
-0.300*** 0.000 -0.217*** 0.007 -0.083*** 0.004
∆ 2yearLossDevelopment
0.087**
0.014
0.136*** 0.000 -0.048*** 0.000
∆ Coastal prem
-0.373**
0.012 -0.315**
0.036 -0.059
0.273
∆ Long-tail
0.252*** 0.006
0.236**
0.012
0.016
0.640
∆ Tax_ex
-0.022
0.376 -0.025
0.331
0.003
0.778
∆ ROA
0.067
0.653 -0.025
0.870
0.092*
0.088
Group (t-1)
0.014
0.683
0.028
0.408 -0.014
0.230
Intercept
0.030
0.647
0.020
0.761
0.010
0.682
Hausman Test
10.38
12.14
24.46
R-Square
0.089
0.086
0.126
N
2,772
2,772
2,772
Note: The table shows the regression results of reinsurance demand on routine CEO, non-routine CEO
vs. non CEO turnover (reference variable) with interaction terms of organizational structure. “
∆
x
”
means change in
x
. Specifically it sugggets that
∆
x
i,t
means
x
i,t
minus
x
i,t
-1
. Please see definition of
all variables in Appendix A. ***significant at 1%, ** significant at 5%, * significant at 10%.