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NTU Management Review Vol. 34 No. 1 Apr. 2024

Table 4 Weak and Healthy Subsample Regression Results
Variable Full sample PSM sample
(1) Full (2) Weak (3) Healthy (4) PSM (5) Weak (6) Healthy
Independent Variables
Sample Sample Sample Sample Sample Sample
Intercept 0.049*** 0.005 0.007** 0.025*** -0.081*** 0.039***
(0.005) (0.006) (0.003) (0.004) (0.017) (0.003)
In-House Actuary Indicator (=1 if In-House 0.000 -0.017*** -0.003*** -0.005*** -0.030*** -0.003***
Actuary used)
(0.001) (0.002) (0.001) (0.001) (0.004) (0.001)
In-House Actuary×Publicly-traded Stock -0.000 0.007** -0.002 0.004*** 0.035*** -0.001
Indicator
(0.002) (0.003) (0.001) (0.002) (0.004) (0.001)
External Actuary×Post SOX 0.011*** 0.032*** 0.011*** 0.015*** 0.013*** 0.016***
Indicator×Publicly-traded Stock Indicator
(0.001) (0.002) (0.001) (0.001) (0.005) (0.001)
In-House×Post SOX Indicator×Publicly- 0.013*** 0.031*** 0.015*** 0.023*** -0.002 0.023***
traded Stock Indicator
(0.001) (0.003) (0.001) (0.001) (0.004) (0.001)
Tax Indicator 0.003*** 0.006*** 0.002*** 0.004*** 0.007*** 0.006***
(0.000) (0.001) (0.000) (0.001) (0.002) (0.000)
Net Income Smoothing 0.001*** 0.002*** 0.001*** 0.001*** 0.001*** 0.001***
(0.000) (0.000) (0.000) (0.000) (0.000) (0.000)
Rate Regulation -0.007*** 0.002 0.000 -0.008*** -0.005** -0.004***
(0.001) (0.002) (0.001) (0.001) (0.003) (0.001)
Weak firm indicator -0.056*** -0.066***
(0.001) (0.001)
Firm Size (in Net Premiums Written) -0.002*** -0.004*** 0.001*** -0.001*** -0.002*** -0.001***
(0.000) (0.000) (0.000) (0.000) (0.001) (0.000)
Herfindahl Index by Lines of Business 0.012*** -0.027*** 0.032*** 0.027*** 0.001 0.031***
(0.002) (0.002) (0.001) (0.001) (0.006) (0.001)
Herfindahl Index of Premiums by State 0.000 -0.020*** 0.005*** -0.006*** -0.009*** -0.006***
(0.001) (0.001) (0.000) (0.001) (0.003) (0.001)
Proportion of Premiums from Personal 0.004*** 0.036*** -0.011*** 0.010*** 0.077*** -0.006***
Lines
(0.001) (0.002) (0.001) (0.001) (0.005) (0.001)
Prop. of Premiums from Commercial Long 0.020*** -0.056*** 0.025*** 0.026*** 0.002 0.038***
Tail Lines
(0.002) (0.003) (0.001) (0.002) (0.009) (0.001)
Reinsurance Usage -0.005*** 0.030*** -0.010*** 0.000 0.034*** -0.013***
(0.001) (0.002) (0.001) (0.001) (0.004) (0.001)
Growth in Net Premiums Written 0.009*** 0.023*** -0.002*** 0.003*** 0.009*** -0.003***
(0.001) (0.001) (0.000) (0.001) (0.002) (0.000)

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