Centro de Documentacion de Fundación MAPFRE - Incentives for managing accounting information : property-liability insurer stock-charter conversions

MAP20071505448

Incentives for managing accounting information : property-liability insurer stock-charter conversions / David Mayers, Clifford W. Smith Jr

Incentives to manage accounting information are examined within 63 property-liability insurance company conversion from mutual ownership to common stock charter. In the conversion process, policyholders'embedded equity claims must be valued. Since mutuals have no separately traded equity, accounting numbers are a critical imput in this valuation. Incentives for surplus management are across firms; the strongest evidence of surplus management is observed among firms where the mutual's executives become the firm's principal stockholders following conversion. The evidence suggests that converting firms manage accounting information primarily by adjusting liabilities and selectively establishing investment losses- not only altering claims settlement policy

En: The Journal of risk and insurance. - Orlando. - Volume 71, number 1, March 2004 ; p. 213-251

1. Empresas de seguros . 2. Contabilidad . 3. Mutualidades de seguros . 4. Contabilidad de costes . 5. Seguro de daños patrimoniales . 6. Gestión financiera . 7. Administración de la empresa de seguros . I. Smith, Clifford W. . II. Título. III. Título: The Journal of risk and insurance.