Journal of Insurance and Finance 2021 KCI Impact Factor : 0.67

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pISSN : 2384-3209

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2015, Vol.26, No.4

  • 1.

    The Differential Regional Effects of Monetary Policy: The Korea Case

    Ki-Ho Kim , Kyeongwon Yoo | 2015, 26(4) | pp.3~37 | number of Cited : 5
    Abstract PDF
    Monetary policy effects are generally perceived to be similar across regions within a country. For this reason, monetary authorities have not taken into consideration region-specific information when conducting analysis on policy effects and policy-related decisions. There have been studies on monetary policies and their differential effects on local region in large areas facilitating great diversity as the U.S. or the EU. One of the main results shows that U.S. monetary policy has differential regional effects across regions and so does EU monetary policy on its member states. For the possibility of differences in monetary policy effects since the local self-government system was launched in Korea in 1995, it seems necessary to analyze the effects of monetary policy on the real economy across the local regions. In this paper, we empirically analyze the differential regional impacts of monetary policy on 16 local governments in Korea and examine the factors that have caused such differences. The result from the impulse response analysis of GRDP shows that monetary policy itself has significant effects throughout the country and that its short-term effect differs across regions. Also, there are significant cross-regional differences in the short run; however, such differences disappear over time. Especially, the regional differences in short-term monetary effects are attributable to the share of interest-sensitive industries, that small and medium-sized firms, and interregional linkages.
  • 2.

    The Regulatory Measures Strengthening Responsibility and Expertise of GA for a Sound Improvement in the Insurance Market

    Jung SeChang , Eun-Kyung Kim , Kim Hunsoo | 2015, 26(4) | pp.39~75 | number of Cited : 4
    Abstract PDF
    The purpose of this paper is to suggest the regulatory measures for responsible and professional General Agent, which is required as the channel growth. In order to propose the regulatory measures, we study the distribution channel in Germany, the UK, the US, and Australia. The measures are suggested into two categories: the responsibility measures and the expertise measures. With regard to the responsibility measures; firstly, an executive of GA has to be fit and proper, and it must consider introducing the SBC(Sales Based Capital) as a capital requirement. Secondly, the GA evaluation criteria, which contribute to lower the buyer's information asymmetry, should be introduced. The criteria are customer satisfaction, financial performance, financial soundness, regulatory compliance, and excellence of the sales force. With regard to the expertise measures, the first one is that the acceptance level of the qualification test should be higher than current levels, the constructed response questions should also be included, and the advanced stages of the certification scheme as the UK should also be established. Second, in house learning should be carried out to improve the problem of cyber education for higher mis-selling sellers.
  • 3.

    Reasonable Calculation of Government Employees’ Lost Earnings

    Seungryul Ma | 2015, 26(4) | pp.77~111 | number of Cited : 2
    Abstract PDF
    In this paper, we considered a more realistic model for evaluating government employees’ lost earnings and then compared it with other models, used in the evaluation of the economic damages, associated with wrongful death cases. According to the results, we could confirm that the current evaluation model used in court underestimates the government employees’ lost earnings. Therefore, in order to obtain a more reasonable evaluation result, it would be necessary to apply future income growth rates and discount rates to the evaluation model in a more thorough fashion. However, in order to alleviate cost burdens, incurred in our more reasonable evaluation model, total offset method might be an alternative as considered in the calculation of ordinary workers’ lost earnings.
  • 4.

    Corporate Social Responsibility and Stock Price Crash Risk: Evidence from Korea

    Kang, Sang Koo , 김학순 , 임현일 | 2015, 26(4) | pp.113~139 | number of Cited : 9
    Abstract PDF
    We examine the effect of a firm's corporate social responsibility(CSR) on the stock price crash risk. Whilst a firm's stock price crash risk increases with its opaqueness(Jin and Myers 2006), the effect of CSR on opaqueness is still controversial. Some researches argue that opaqueness decreases with CSR(Kim et al., 2012; Gelb and Strawser, 2001). Other researches report the opposite in that CSR could be from strategic motives and agency problem could intervene(Brown et al. 2006; Barnea and Rubin 2006). Thus, the relation becomes an empirical question. If CSR is negatively(positively) related to opaqueness, stock price crash risk will increase(decrease). Using Korean companies listed in the KOSPI from 2004 to 2011, we find significantly negative (-) relation between CSR level and stock price crash risk, after controlling firm specific characteristic variables. These findings support Kim et al.(2014), which pioneered the relationship between CSR and stock price crash risk with the U.S. data. Further, we show another significantly negative (-) relation between changes in the CSR and stock price crash risk, after the level of CSR is controlled. Lastly. we attempt to prove the utility of subsection in the KEJI index, which best explains KEJI from principal component factor analysis. Out of the seven categories that comprises KEJI, consumer protection, environment protection, and contribution to economic growth are factors that explains KEJI index best.
  • 5.

    Effects of Life Events on Changes in Insurance Holdings

    오승연 , Yunah Song | 2015, 26(4) | pp.141~171 | number of Cited : 1
    Abstract PDF
    We study the effects of life events on changes in household insurance holdings. Most of existing literature on the household demand for insurance has taken static approach using cross-sectional data, which does not allow for dynamic analyses of the relationship between life events and the demand for insurance. Thus, we analyse the demand for insurance in a dynamic setting, using panel data and classifying changes in holdings of insurance coverage into four categories such as initiation, increase, termination(no coverage), and reduction. We find that life events, such as the birth of a child, the death of a household member, being employed or being unemployed, changes in employment status (self-employed or not), and changes in income or net assets, have statistically significant impact on household insurance holdings, but marriage and divorce do not. In particular, our results indicate that the households with the birth of their first child are more likely to initiate or increase their holdings of insurance coverage than are the households with the birth of their second child. Our findings suggest that the insurance industry needs to develop strategies to deal with low birth rates and changes in the labor market environment.