The wealth effects of allowing bank entry into the insurance industry

被引:34
作者
Carow, KA [1 ]
机构
[1] Indiana Univ, Kelley Sch Business, Indianapolis, IN 46204 USA
关键词
D O I
10.2307/2678134
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
The banking industry and the Comptroller of the Currency won three Supreme Court rulings allowing banks to sell annuities and other insurance products. Overall, bank stock prices have not changed significantly surrounding these rulings. However, these rulings significantly decreased insurance company stock prices. Life and health insurance companies and insurance agencies have the most negative reactions. Property-liability insurance companies have a less negative response. Insurance companies that sell via a brokerage system have the highest stock returns. The results are consistent with contestable market theory. Decreasing entry barriers reduces the economic rents of insurance companies and changes the competitive structure among insurance companies.
引用
收藏
页码:129 / 150
页数:22
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