본문 바로가기
  • Home

Explanatory Factors in Non-Life Insurer's Dividend Policy

  • Journal of Insurance and Finance
  • 2005, 16(1), pp.33-63
  • Publisher : Korea Insurance Research Institute
  • Research Area : Social Science > Business Management

Kim Jae-Hyun 1

1서원대학교

Accredited

ABSTRACT

This research identifies factors that explain Korean non-life i nsurance companies’dividend policy for the last fifteen years. We use growth rate, capital adequacy,ownership, foreign investors’stake, and dividend history. Empir ical analysis findsthat payout ratio has positive and negative relationships with growth rate anddividend history, respectively. This finding reveals that non-l ife insurers have notperformed a optimal dividend policy. However, after 1999 non-li fe insurers’payoutratio is being affected by investment opportunities and capital adequacyrequirements. Owners stake is not important factor to determine the divided yield,while foreign investors stake has a positive relationship with payout ratio. Thissuggests a pressure to increase dividend yield from foreign inv estors to Korean non-life insurance industry. However, we also recognize a possibili ty for foreigninvestment attracted by high dividend policy of large non-life insurers. In the otherhand, this research confirms an evidence of “Too big to fail”in the dividend policyperspectives.

Citation status

* References for papers published after 2022 are currently being built.