Defense in Competition: Multimarket and Structural Effects of Firm-Specific Competition on Risk Transfer
研究了企业如何根据自身面临的多市场竞争和行业集中度来调整风险转移策略，发现多市场竞争与风险转移呈倒U型关系，且企业会采取与竞争对手相反的风险管理策略。
This study extends current knowledge on competition and corporate defense by investigating how firms transfer risk in response to their firm-specific multimarket and structural competitive conditions. Drawing on the theory of multimarket competition, we propose an inverted U–shaped relationship between multimarket competition and risk transfer. We also propose that, for the sake of gaining a competitive edge, the extent to which a firm manages risk will tend to be opposite to that of its competitors. Last, we propose that egocentric industry concentration will moderate the relationship between multimarket competition and risk transfer besides its direct effect. Analysis of reinsurance usage in the US property and casualty insurance industry strongly supports our model and shows that firm-specific competitive conditions are salient to a firm's risk transfer level.