| This dissertation investigates the prediction of mergers in the life insurance industry through the use of financial statement analysis. In an attempt to improve prediction accuracy, mergers were differentiated based on the perceived motivation for the transaction. Mergers were either classified as “financially distressed,” thereby avoiding insolvency, or “not financially distressed” transactions through the use of insolvency prediction models. The results of this dissertation provide additional information that can be applied to both insolvency and merger prediction. Regarding insolvencies, there are a number of variables shown to have been constant predictors of life insurer insolvency over the entire sample period of this study (1987–1997). With respect to mergers, the additional information provided through the motivation-based methodology does assist in the prediction of life insurer mergers. |
