The name is absent

10

2.1.2 Literature review

Previous research indicates that many regulations have made significant impacts on
the value of financial services firms including insurers. Although not all the findings on
such value changes are in the same direction, such changes surely affect the business
activities of the firms. Cornett and Tehranian (1989) found that the passage of the
Depository Institutions Deregulation and Monetary Control Act (DIDMCA) of 1980
had positive wealth effects for large commercial banks and a negative impact on
savings and loans. Carow and Heron (1998) found that the passage of the Interstate
Banking and Branch Efficiency Act (IBBEA) of 1994 resulted in positive wealth
effects for large bank holding companies. Amoako-Adu and Smith (1995) concluded
that financial services deregulation in Canada between 1984 and 1991 had a positive
impact on insurance firms. Pacini and Marlett (2001) resulted that the legislative
creation of the Florida Hurricane Catastrophe Fund had negative wealth effects for
property-liability insurers.

Akhigbe and Whyte (2001) found that positive valuation effects for banks, bro-
kerage firms, insurance companies, and all the financial institutions combined due to
the passage of GLB; while Carow and Heron (2002) found negative returns for foreign
banks, thrifts and finance companies, and found insignificant returns for banks and
positive returns for investment banks and insurance companies.

Marlett et al. (2003)

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