Why did shareholder liability disappear?

• 成果类型: Article
• 署名作者: Bogle, David A.; Campbell, Gareth; Coyle, Christopher; Turner, John D.
• 署名单位: Queens University Belfast; Queens University Belfast
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2023.103761
• 发表日期: 2024
• 关键词: insurance; regulation; Shareholder liability; United Kingdom

摘要

Why did shareholder liability disappear? We address this question by looking at its use by British insurance companies until its complete disappearance. We explore three possible explanations for its demise: (1) regulation and government-provided policyholder protection meant that it was no longer required; (2) it had become de facto limited; and (3) shareholders saw an opportunity to expunge something they disliked when insurance companies grew in size. Using hand-collected archival data, our findings suggest investors attached a risk premium to companies with shareholder liability, and it was phased out as insurance companies expanded, which meant that they were better able to pool risks.