IDEAS home Printed from https://ideas.repec.org/a/wri/journl/v26y2003i2p114-128.html
   My bibliography  Save this article

An Empirical Examination of Sample Selection Methods in the Context of Life Insurer Financial Distress

Author

Listed:
  • James M. Carson
  • Robert E. Hoyt

Abstract

This study empirically examines properties of matched-pair versus non matched- pair sampling methods in the context of financial distress for the U.S. life insurance industry. While the majority of prior insurer insolvency studies employed matched-pair sampling techniques to identify important variables and to classify and predict firms likely to become financially distressed, we provide empirical evidence that three solvency-related items are sample dependent: variables identified as important measures of insolvency, coefficients, and classification rates. Thus, empirical studies employing relatively small matched-pair samples are likely to yield sample specific results that are not fully generalizable to the relevant population of firms. Results apply directly to financial distress models and also extend to other research employing choice-based sampling methods that involve binary state models with skewed distribution of the two states of interest.

Suggested Citation

  • James M. Carson & Robert E. Hoyt, 2003. "An Empirical Examination of Sample Selection Methods in the Context of Life Insurer Financial Distress," Journal of Insurance Issues, Western Risk and Insurance Association, vol. 26(2), pages 114-128.
  • Handle: RePEc:wri:journl:v:26:y:2003:i:2:p:114-128
    as

    Download full text from publisher

    File URL: http://www.insuranceissues.org/PDFs/262CH.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Deborah Bloomfield & Joshua Shackman, 2008. "Non-audit service fees, auditor characteristics and earnings restatements," Managerial Auditing Journal, Emerald Group Publishing, vol. 23(2), pages 125-141, January.
    2. Chiang, Chia-Chun & Niehaus, Greg, 2024. "Market discipline and policy loans," Journal of Banking & Finance, Elsevier, vol. 159(C).
    3. Huong Dang, 2014. "A Competing Risks Dynamic Hazard Approach to Investigate the Insolvency Outcomes of Property-Casualty Insurers," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 39(1), pages 42-76, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wri:journl:v:26:y:2003:i:2:p:114-128. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: James Barrese (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.