Centro de Documentacion de Fundación MAPFRE - Trust-preferred securities and insurer financing decisions

MAP20180010057

Trust-preferred securities and insurer financing decisions / James I. Hilliard, Steven W Pottier, Jianren Xu

Sumario: We analyze insurance holding company (IHC) issuance of trust-preferred securities (TPS) from 1994 to 2013. We find that larger and more financially levered IHCs issued TPS in 1996 and 1997, as well as those that obtained financial strength ratings from A.M. Best. Abnormal stock price returns are positively related to financial distress costs, growth opportunities, and tax burden, but negatively related to size. Consistent with the pecking order theory, intent to use TPS proceeds to retire debt is positively related to abnormal stock returns, whereas intent to use proceeds to retire preferred equity is negatively related to abnormal stock returns

En: The Journal of risk and insurance. - Nueva York : The American Risk and Insurance Association, 1964- = ISSN 0022-4367. - 01/03/2018 Volumen 85 Número 1 - marzo 2018 , p. 219-244

1. Participaciones preferentes . 2. Títulos-valores . 3. Acciones . 4. Mercado de seguros . 5. Productos financieros . 6. Empresas de seguros . I. Pottier, Steven W. . II. Xu, Jianren . III. Título.