KJCKorea
Journal Central

@article{ART002143944},
author={Hee Sub Byun and 조영현},
title={Derivatives Use and Corporate Performance in the Life Insurance Industry},
journal={Journal of Insurance and Finance},
issn={2384-3209},
year={2016},
volume={27},
number={3},
pages={81-115},
doi={10.23842/jif.2016.27.3.003}

TY - JOUR
AU - Hee Sub Byun
AU - 조영현
TI - Derivatives Use and Corporate Performance in the Life Insurance Industry
JO - Journal of Insurance and Finance
PY - 2016
VL - 27
IS - 3
PB - Korea Insurance Research Institute
SP - 81
EP - 115
SN - 2384-3209
AB - This paper investigates whether the Korean life insurance companies' use of derivatives has effectiveness as a risk management. Empirically, we confirm that the derivatives use has a significantly positive effect on the corporate performance measured by profitability. This effect is mainly observed when the purpose of the derivatives use is risk avoidance, and when the firm has relatively small scale of assets. Additionally, we find that the derivatives use reduces the distressed assets. In the mean time, among the various types of derivatives, the currency derivatives, forwards, futures, and swap have positive effect on corporate performance. This paper provides practical implications for the life insurance companies to minimize the risk and to maximize the profit by strategically using the derivatives.
KW - derivatives use;distressed asset;Korean life insurance company;risk management;profitability
DO - 10.23842/jif.2016.27.3.003
ER -

Hee Sub Byun and 조영현. (2016). Derivatives Use and Corporate Performance in the Life Insurance Industry. Journal of Insurance and Finance, 27(3), 81-115.

Hee Sub Byun and 조영현. 2016, "Derivatives Use and Corporate Performance in the Life Insurance Industry", Journal of Insurance and Finance, vol.27, no.3 pp.81-115. Available from: doi:10.23842/jif.2016.27.3.003

Hee Sub Byun, 조영현 "Derivatives Use and Corporate Performance in the Life Insurance Industry" Journal of Insurance and Finance 27.3 pp.81-115 (2016) : 81.

Hee Sub Byun, 조영현. Derivatives Use and Corporate Performance in the Life Insurance Industry. 2016; 27(3), 81-115. Available from: doi:10.23842/jif.2016.27.3.003

Hee Sub Byun and 조영현. "Derivatives Use and Corporate Performance in the Life Insurance Industry" Journal of Insurance and Finance 27, no.3 (2016) : 81-115.doi: 10.23842/jif.2016.27.3.003

Hee Sub Byun; 조영현. Derivatives Use and Corporate Performance in the Life Insurance Industry. Journal of Insurance and Finance, 27(3), 81-115. doi: 10.23842/jif.2016.27.3.003

Hee Sub Byun; 조영현. Derivatives Use and Corporate Performance in the Life Insurance Industry. Journal of Insurance and Finance. 2016; 27(3) 81-115. doi: 10.23842/jif.2016.27.3.003

Hee Sub Byun, 조영현. Derivatives Use and Corporate Performance in the Life Insurance Industry. 2016; 27(3), 81-115. Available from: doi:10.23842/jif.2016.27.3.003

Hee Sub Byun and 조영현. "Derivatives Use and Corporate Performance in the Life Insurance Industry" Journal of Insurance and Finance 27, no.3 (2016) : 81-115.doi: 10.23842/jif.2016.27.3.003