Research Article
Corporate Diversification, Ownership, and Solvency in China’s Property-Liability Insurance Companies
Table 5
The impact of geographical diversification (measured by entropy number) on solvency.
| Variable | Full sample | Chinese-funded | Foreign-funded |
| | (1) | (2) | (3) | L.sol | 0.034 | 0.005 | 0.041 | | (37.819) | (3.663) | (17.084) | e-geodiv | −5.675 | −9.064 | 1.734 | | (−8.895) | (−41.251) | (0.900) | Size | 5.967 | 8.041 | 0.049 | | (6.064) | (25.270) | (0.039) | Age | −7.679 | −4.586 | −12.662 | | (−4.767) | (−3.786) | (−5.881) | Payrate | 1.971 | 6.469 | 2.128 | | (7.991) | (3.403) | (1.298) | Rein | 13.760 | 3.156 | 42.315 | | (3.226) | (1.559) | (4.841) | ms | −65.050 | −29.031 | 903.442 | | (−0.842) | (−0.919) | (0.191) | Investrisk | −3.619 | −1.817 | −16.448 | | (−2.334) | (−2.619) | (−1.605) | Gdpgrowth | 29.942 | 11.278 | 136.345 | | (1.599) | (0.544) | (5.726) | Constant | −11.977 | −26.336 | 15.615 | | (−1.613) | (−9.507) | (4.332) | N | 268 | 178 | 98 | AR (2) test | (0.531) | (0.982) | (0.696) | Sargan test | (0.204) | (0.213) | (0.949) |
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Note: ∗∗∗ means , ∗∗ means , and ∗ means . |