| This study will focus on multinational diversification in the property and casualty segment of the insurance industry and will explore the relative advantages and disadvantages that multinational firms may experience. The complexity of multinational firms, with the associated agency problems and information asymmetry problems, should be a disadvantage (Dennis, Dennis, & Yost, 2002). Conversely, multinational firms should experience greater economies of scale, have greater access to capital markets, and benefit from imperfections in international financial markets (Errunza & Senbet, 1981). |
