Corporate Diversification, Ownership, and Solvency in China’s Property-Liability Insurance Companies

Table 4

The impact of business diversification (measured by entropy number) on solvency.

Variable	Full sample	Chinese-funded	Foreign-funded
	(1)	(2)	(3)
L.sol	0.044	0.023	0.040
	(91.698)	(49.630)	(50.676)
e-prodiv	3.106	7.287	−4.455
	(1.707)	(4.983)	(−3.383)
Size	3.298	2.031	0.766
	(9.729)	(7.956)	(0.527)
Age	−12.480	−10.778	−9.358
	(−11.148)	(−24.671)	(−5.937)
Payrate	1.914	4.752	0.518
	(8.543)	(4.523)	(0.872)
Rein	15.308	10.312	40.270
	(4.097)	(3.881)	(5.712)
ms	−94.840	−135.375	−4,448.806
	(−1.259)	(−3.496)	(−0.926)
Investrisk	−3.044	−1.277	−8.836
	(−2.820)	(−3.688)	(−1.290)
Gdpgrowth	−25.524	−119.584	146.557
	(−0.936)	(−9.009)	(7.741)
Constant	6.341	17.712	10.690
	(2.005)	(5.397)	(2.784)
N	268	178	98
AR (2) test	(0.531)	(0.358)	(0.696)
Sargan test	(0.204)	(0.368)	(0.949)

Note. ^∗∗∗ means , ^∗∗ means , and ^∗ means .