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臺大管理論叢
第
27
卷第
2S
期
281
Appendix Definition of Variables
Variable
Definition
Dependent variables
∆ Re
ins_ratio
i.t
The variable is the difference value of total reinsurance ratio of each year
minus total reinsurance ratio of year -1. Total reinsurance ratio (Re
ins_
ratio
i.t
) is measured as the ratio of reinsurance ceded divided by the sum
of direct premiums written and reinsurance assumed.
∆ Re
ins_aff_ratio
i.t
The variable is the difference value of affiliated reinsurance ratio of each
year minus affiliated reinsurance ratio of year -1. Affiliated reinsurance
ratio (Re
ins_aff_ratio
i.t
) 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
The variable is the difference value of non-affiliated reinsurance ratio of
each year minus non-affiliated reinsurance ratio of year -1. Non-affiliated
reinsurance ratio (Re
ins_nonaff_ratio
i.t
) is measured as the ratio of non-
affiliated reinsurance ceded divided by the sum of direct premiums
written plus reinsurance assumed.
Independent variables
CEO turnover variables
Turnover
i.t
Turnover is an indicator variable: 1 = if CEO changes from year
t
–1 to
t
, 0
= otherwise.
RoutineCEO
i.t
Routine CEO turnover is an indicator variable: 1 = if the departing CEO
remains on the board of directors in year
t
, 0 = otherwise.
Non–RoutineCEO
i.t
Non-routine CEO turnover is an indicator variable: 1 = if the departing
CEO does not remain on the board of directors in year
t
, 0 = otherwise.
ForcedCEO
i.t
Forced CEO turnover is an indicator variable: 1 = if the departing CEO
does not leave for reasons for health, death, or to accept another
position; or departing CEO is under the age of 60 and thus less likely to
be retiring in the year
t
, 0 = otherwise.
VoluntaryCEO
i.t
Voluntary CEO turnover is an indicator variable: 1 = if the departing CEO
leaves for reasons for retirement, health, death, or to accept another
position in year
t
, 0 = otherwise.
Organizational structure and Corporate governance variables
Mutual
i.t
Mutual is a binary variable: 1 = mutual organizational structure, 0 = stock.
Duality
i.t
CEO/chairperson of board duality, is a binary variable, 1 if the CEO and
chairperson of the board are the same person, 0 otherwise.
Boardsize
i.t
Board size is defined as total number of directors on the board.
Independent_directors
i.t
Independent directors is defined as the percentage of independent
directors on the board.
Big
4
Auditors
i.t
Big 4 auditors, which is a binary variable, 1 if the auditor is one of the
four largest accounting companies in the U.S. (PricewaterhouseCoopers
LLP, Ernst & Young, Deloitte, and KPMG), and 0 otherwise.