Details
| Original language | English |
|---|---|
| Pages (from-to) | 53-62 |
| Number of pages | 10 |
| Journal | Geneva Papers on Risk and Insurance: Issues and Practice |
| Volume | 35 |
| Issue number | 1 |
| Publication status | Published - 1 Jan 2010 |
Abstract
The financial crisis has led to controversial discussions about the capital base of the European insurance industry. Dividend cuts have been suggested to preserve capital. However, some observers seem to fear that investors could interpret a reduction of dividends as a sign of future problems. The empirical evidence reported here does not indicate that dividend smoothing or dividend signalling are relevant economic phenomena examining the dividend policy of the European insurance industry. Therefore, insurance companies should not be too concerned about the negative consequences of dividend cuts.
Keywords
- Capital base, Dividend policy, Financial crisis, Signalling, Smoothing
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- Accounting
- Business, Management and Accounting(all)
- Economics, Econometrics and Finance(all)
- Finance
- Economics, Econometrics and Finance(all)
- Economics and Econometrics
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In: Geneva Papers on Risk and Insurance: Issues and Practice, Vol. 35, No. 1, 01.01.2010, p. 53-62.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - On the Impact of the Financial Crisis on the Dividend Policy of the European Insurance Industry
AU - Reddemann, Sebastian
AU - Basse, Tobias
AU - Von Der Schulenburg, Johann Matthias Graf
PY - 2010/1/1
Y1 - 2010/1/1
N2 - The financial crisis has led to controversial discussions about the capital base of the European insurance industry. Dividend cuts have been suggested to preserve capital. However, some observers seem to fear that investors could interpret a reduction of dividends as a sign of future problems. The empirical evidence reported here does not indicate that dividend smoothing or dividend signalling are relevant economic phenomena examining the dividend policy of the European insurance industry. Therefore, insurance companies should not be too concerned about the negative consequences of dividend cuts.
AB - The financial crisis has led to controversial discussions about the capital base of the European insurance industry. Dividend cuts have been suggested to preserve capital. However, some observers seem to fear that investors could interpret a reduction of dividends as a sign of future problems. The empirical evidence reported here does not indicate that dividend smoothing or dividend signalling are relevant economic phenomena examining the dividend policy of the European insurance industry. Therefore, insurance companies should not be too concerned about the negative consequences of dividend cuts.
KW - Capital base
KW - Dividend policy
KW - Financial crisis
KW - Signalling
KW - Smoothing
UR - http://www.scopus.com/inward/record.url?scp=76149126750&partnerID=8YFLogxK
U2 - 10.1057/gpp.2009.37
DO - 10.1057/gpp.2009.37
M3 - Article
AN - SCOPUS:76149126750
VL - 35
SP - 53
EP - 62
JO - Geneva Papers on Risk and Insurance: Issues and Practice
JF - Geneva Papers on Risk and Insurance: Issues and Practice
SN - 1018-5895
IS - 1
ER -