B<scp>ETWEEN</scp>‐G<scp>ROUP</scp> A<scp>DVERSE</scp> S<scp>ELECTION</scp>: E<scp>VIDENCE</scp> F<scp>ROM</scp> G<scp>ROUP</scp> C<scp>RITICAL</scp> I<scp>LLNESS</scp> I<scp>NSURANCE</scp>

Eling, Martin; Jia, Ruo; Yao, Yi

doi:10.1111/jori.12097

Cited by 14 publications

(7 citation statements)

References 63 publications

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“…As argued in the literature, CSR can be used to act as “insurance” for firm reputation protection and crisis management (Minor & Morgan, 2011; Shiu & Yang, 2017; Werther & Chandler, 2005). Given that adverse selection and moral hazard are widespread in insurance markets (Eling et al., 2017; Soika, 2018), a similar problem may also exist for firms in CSR engagement vis‐à‐vis CSR being considered as a protective measure. To gain the trust of stakeholders, firms with severe agency problems may carry out responsible activities and pretend to be a “good citizen”, and expect those activities to ultimately reduce the value loss in the future (adverse selection).…”

Section: The Prior Literature and Hypothesesmentioning

confidence: 99%

The combined effects of innovation and corporate social responsibility on firm financial risk

Liu

Gao

2021

Financ Manag Account

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Prior literature has largely dealt with the effect of either corporate social responsibility (CSR) or innovation on firm financial risk. No earlier research has examined the combined effect of a firm's simultaneous pursuit of CSR and innovation on firm financial risk. This study investigates the combined effects with a view to fostering our understanding of relationships of CSR and innovation with financial risk. Using the patent application and CSR data of 2,174 Chinese listed firms over the period 2010–2016, this study finds that firms with higher levels of imitative innovation and good CSR performance exhibit higher financial risk. The results remain after a series of robustness tests including the use of an alternative measure of firm financial risk and CSR. The results indicate that firms with a higher level of imitative innovation exhibit greater financial risk; however, the risk cannot be mitigated by firms' good CSR performance. CSR performance helps firms boost the positive image of a “good citizen” and reduce firm financial risk; however, the combined effects of CSR and imitative innovation trigger higher financial risk. The results of this study support the umbrella theory of CSR that exacerbates the moral hazard for those firms that rely on imitative innovation.

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Section: The Prior Literature and Hypothesesmentioning

confidence: 99%

The combined effects of innovation and corporate social responsibility on firm financial risk

Liu

Gao

2021

Financ Manag Account

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“…A few studies have investigated sick leave policies in Asian countries (e.g., Earle & Heymann, 2006; Eling, Jia, & Yao, 2015). However, most of them did not thoroughly analyze the effects of the policies on labor behaviors.…”

Section: Literature Reviewmentioning

confidence: 99%

Social insurance reform and absenteeism in Vietnam

2020

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There has been very little research into sickness absence in Vietnam. This article reveals how the labor market might adjust to more generous illness benefits offered by the Vietnam Social Insurance Law. In the study, we combined the difference‐in‐differences and matching techniques and used data from four waves of the Vietnam Labor Force Survey. The results indicate that the generosity of the benefits positively links to both the incidence and the duration of sick leave. The article also sheds light on the mechanism underlying the relationship by disaggregating the effects on gender, income, and job tenure groups. The results support current government efforts to enhance the public social insurance system.Key Practitioner Message: • Sickness insurance affects sick leave incidence and duration; • Low‐income workers and female workers are sensitive to sickness benefits reform; • There is a link between job tenure and sick leave.

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“…However, if employees are insulated from plan costs because the premiums are heavily subsidized by the employer, they may choose more generous plans which may lead to adverse selection in the group market (Cutler and Zeckhauser, 2000). If individual choice is excluded altogether from a group insurance scenario, then group insurance may still experience the presence of adverse selection (Eling, Jia, and Yao, 2017). 4 , 5 While insurers writing business in the large group market post‐ACA are permitted to use experience rating, health insurers writing business in the individual and small group markets are restricted to the use of adjusted community rating, thus reducing their ability to charge rates based on risk classification.…”

Section: Background and Hypothesis Developmentmentioning

confidence: 99%

“…55Eling, Jia, and Yao (2017) study between‐group adverse selection in group critical illness insurance and find that if group insurance is renewed over time with the same insurer, the information learned from experience rating mitigates the effects of the presence of adverse selection in the group market.…”

mentioning

confidence: 99%

Restrictive Rating and Adverse Selection in Health Insurance

Born¹,

Sirmans²

2019

J of Risk & Insurance

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Recent healthcare reform in the United States, including rating restrictions, imposed substantial changes to health insurer operations. We provide evidence of the presence of adverse selection following the enactment of the Patient Protection and Affordable Care Act of 2010. Using a unique dataset consisting of information on health insurance plans from multiple health insurers, across states for the years 2013-2017, we document a statistically significant correlation between coverage and risk, indicating the presence of adverse selection, that varies over time in both the individual and group markets for health insurance.

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BETWEEN‐GROUP ADVERSE SELECTION: EVIDENCE FROM GROUP CRITICAL ILLNESS INSURANCE

Cited by 14 publications

References 63 publications

The combined effects of innovation and corporate social responsibility on firm financial risk

The combined effects of innovation and corporate social responsibility on firm financial risk

Social insurance reform and absenteeism in Vietnam

Restrictive Rating and Adverse Selection in Health Insurance

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