Efficiency and Stock Returns: Evidence from the Insurance Industry

Journal of Productivity Analysis, Forthcoming

Posted: 21 Jun 2013

See all articles by Chrysovalantis Gaganis

Chrysovalantis Gaganis

University of Crete - Faculty of Social Sciences - Department of Economics

Iftekhar Hasan

Fordham University ; Bank of Finland; University of Sydney

Fotios Pasiouras

GSCM-Montpellier Business School

Multiple version iconThere are 2 versions of this paper

Date Written: June 16, 2013

Abstract

This study investigates whether capital market values the efficiency of firms. Tracing stock returns and efficiency changes of 399 listed insurance firms in 52 countries during the 2002-2008 period, the paper reports a positive and statistically significant relationship between profit efficiency change and market adjusted stock returns. However, there is no robust evidence that cost efficiency change is associated with stock returns.

Keywords: Efficiency, insurance, stock returns

Suggested Citation

Gaganis, Chrysovalantis and Hasan, Iftekhar and Pasiouras, Fotios, Efficiency and Stock Returns: Evidence from the Insurance Industry (June 16, 2013). Journal of Productivity Analysis, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2280048

Chrysovalantis Gaganis (Contact Author)

University of Crete - Faculty of Social Sciences - Department of Economics ( email )

University Campus
Rethymno, Crete, 74100
Greece

HOME PAGE: http://economics.soc.uoc.gr/en/staff/4551/17

Iftekhar Hasan

Fordham University ( email )

45 COLUMBUS AVENUE
GBA-5TH FLOOR
NEW YORK, NY 10023
United States

Bank of Finland ( email )

P.O. Box 160
Helsinki 00101
Finland

University of Sydney ( email )

P.O. Box H58
Sydney, NSW 2006
Australia

Fotios Pasiouras

GSCM-Montpellier Business School ( email )

2300, Avenue des Moulins
Montpellier, 34185
France

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