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Journal of Accounting and Economics Vol. 20 No. 3 1995

Taxation, regulation, and the organizational structure of property-casualty insurers

Kathy R. Petroni1; Douglas A. Shackelford2

1 Michigan State University · 2 University of North Carolina at Chapel Hill

Abstract

This study investigates the effects of state taxes and regulation on an organizational structure decision for expanding property-casualty insurers (subsidiary versus license). Tests are conducted of the relation between the organizational structure of 2,335 property-casualty insurers and state tax and regulatory conditions in 1991. Evidence is provided that property-casualty insurers structure their cross-state expansion to mitigate both state tax and regulatory costs.

DOI
10.1016/0165-4101(95)00402-5
Volume
20
Issue
3
Pages
229-253
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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