I joined the Baylor University faculty during Summer 2000 as Professor of Finance and Insurance, and was appointed to the Frank S. Groner Memorial Chair of Finance during Fall 2002. During the Spring 2006 semester, I held an Adjunct Professor appointment at the University of Pennsylvania's Wharton School, and I was appointed as a Visiting Scholar at Wharton in September 2007. Prior to my current appointments at Baylor and Wharton, I held faculty appointments in the business schools at Pennsylvania State University (1984-1989), University of Texas at Austin (1989-1996), and Louisiana State University (1998-2000). In total, I have published more than 20 papers in the most respected journals and books in my field and have collectively been cited by my academic peers more than 500 times (source: scholar.google.com)
My research addresses how contracts, firms and markets can be designed to allow for the efficient allocation, management, and pricing of risk. Traditional approaches to risk management typically focus upon the analysis of a specific type of operating or financial risk without considering how such risks interact. My research reflects more of an integrated approach to the study of risk management. In recent years, integrated risk management has become increasingly popular in professional as well as academic circles. This change in approach and philosophy has been motivated significantly by the convergence of insurance and financial markets, along with the ever-increasing frequency and severity of natural and man-made catastrophes.
My research is both prescriptive and descriptive, in that I do both theoretical and empirical work. The research techniques that I employ are derived primarily from the fields of financial economics and econometrics. My research has focused primarily upon various topics which can be categorized as follows: 1) insurance pricing and related issues, 2) theory of the insurance firm, 3) reinsurance demand and market equilibrium, and 4) corporate risk management. I have also published work in other fields such as financial econometrics and utility theory.
Category 1: Insurance Pricing and Related Issues
Published papers
- “Price Regulation in Property-Liability Insurance: A Contingent Claims Approach,” (with Neil A. Doherty), Journal of Finance, Vol. 41, No. 5, December 1986, pp. 1031-1050.
- “Property-Liability Insurance Pricing Models: An Empirical Evaluation,” (with Stephen P. D'Arcy), Journal of Risk and Insurance, Vol. 57, No. 3, September 1990, pp. 391-430.
- “An Exposition of the Implications of Limited Liability and Asymmetric Taxes for Property-Liability Insurance,” Journal of Risk and Insurance, Vol. 59, No. 1, March 1992, pp. 34-56.
- “Insurance Cycles: Interest Rates and the Capacity Constraint Model,” (with Neil A. Doherty), Journal of Business, Vol. 68, No. 3 (July 1995), pp. 383-404.
Working papers
Research impact
- “Price Regulation in Property-Liability Insurance: A Contingent Claims Approach” was reprinted in Foundations of Insurance Economics, Georges Dionne and Scott Harrington, editors (Norwell, MA: Kluwer Academic Publishers, 1991), pp. 572-591. This paper has been cited 138 times and continues to serve as an important source for research on the theory of insurance pricing. In his Nobel Prize lecture entitled “Applications of Option-Pricing Theory: Twenty-Five Years Later” (published in The American Economic Review, 88:3 (June), 323-349), Robert C. Merton cites this paper for its application of options theory to the pricing of insurance contracts.
- “Property-Liability Insurance Pricing Models: An Empirical Evaluation” was reprinted in Volume 1 of the Casualty Actuarial Society's 1990 Discussion Paper Program, and as Chapter 8 in Managing the Insolvency Risk of Insurance Companies, Richard Derrig and J. D. Cummins, editors (Norwell, MA: Kluwer Academic Publishers, 1991), pp. 209-247). This paper has been cited 36 times.
- “An Exposition of the Implications of Limited Liability and Asymmetric Taxes for Property-Liability Insurance ” was awarded the 1992 Journal of Risk and Insurance Outstanding Article Award. This paper has been cited 18 times.
- “Insurance Cycles: Interest Rates and the Capacity Constraint Model” has been cited 59 times.
Category 2: The Theory of the Insurance Firm
Published papers
- “On the Application of Finance Theory to the Insurance Firm,” Journal of Financial Services Research, Vol. 1, No. 1, September 1987, pp. 57-76.
- “Incentive Contracting and the Role of Participation Rights in Stock Insurance Companies,” (with Steven W. Pottier), Journal of Risk and Insurance, Vol. 62, No. 2 (June 1995), pp. 253-270.
- “The Role of Electronic Commerce in Financial Services Integration,” North American Actuarial Journal, Vol. 4, No. 3 (July 2000), pp. 64-70.
- “On the Implications of the Internet for Insurance Markets and Institutions,” Risk Management and Insurance Review, Vol. 5, No. 2 (Fall 2002), pp. 1-12.
Research impact
- “On the Application of Finance Theory to the Insurance Firm” was reprinted as Chapter 8 in Financial Models of Insurance Solvency, Richard Derrig and J. D. Cummins, editors (Norwell, MA: Kluwer Academic Publishers, 1989), pp. 243-265). This paper has been cited 25 times.
- “Incentive Contracting and the Role of Participation Rights in Stock Insurance Companies” was awarded the 1995 Journal of Risk and Insurance Outstanding Article Award. This paper has been cited 26 times.
- "The Role of Electronic Commerce in Financial Services Integration" has been cited 4 times.
- "On the Implications of the Internet for Insurance Markets and Institutions" has been cited 14 times.
Category 3: Reinsurance Demand and Market Equilibrium
Published papers
- “Reinsurance, Taxes And Efficiency: A Contingent Claims Model of Insurance Market Equilibrium,” (with Henri Loubergé), Journal of Financial Intermediation, Vol. 5, No. 1 (January 1996), pp. 74-93.
- “The Demand For Reinsurance: Theory and Empirical Tests,” (with Joan Lamm-Tennant), Insurance and Risk Management, Vol. 7, No. 3 (July 2003), pp. 217-237.
Working papers
Research impact
- “Reinsurance, Taxes and Efficiency: A Contingent Claims Model of Insurance Market Equilibrium” has been cited 28 times.
- “The Demand For Reinsurance: Theory and Empirical Tests” has been cited 44 times.
- "Adverse Selection in Reinsurance Markets" has been cited 4 times.
Category 4: Corporate Risk Management
Published papers
- “Risk Management: The Unifying Framework for Business Scholarship and Pedagogy,” Risk Management and Insurance Review, Vol. 10, No. 1 (March 2007).
- “Moral Hazard, Adverse Selection, and Tort Liability,” Journal of Insurance Issues, Vol. 28, No. 1 (Spring 2005), pp. 1-13.
- “On Corporate Insurance,” (with Richard D. MacMinn). Chapter 16 in Handbook of Insurance, Georges Dionne, editor ( Norwell, MA: Kluwer Academic Publishers), ISBN: 0792378709, December 2000, pp. 541-564.
- “The Underinvestment Problem, Bond Covenants and Insurance,” (with Richard D. MacMinn), Journal of Risk and Insurance, Vol. 60, No. 4, December 1993, pp. 635-646.
Working papers
Research impact
- "Risk Management: The Unifying Framework for Business Scholarship and Pedagogy" has been cited 3 times.
- "The Underinvestment Problem, Bond Covenants and Insurance" received the 1993 Journal of Risk and Insurance Outstanding Article Award and the 2003 Robert I. Mehr Award recognizing the Journal of Risk and Insurance article published in 1993 with the greatest ten-year impact in the field of risk management and insurance. It has been cited 31 times.
Category 5: Other Work
Published papers
- “A New Stochastically Flexible Event Methodology with Application to Proposition 103,” (with Patrick L. Brockett and Hwei-Mei Chen), Insurance Mathematics and Economics, Vol. 25, No. 2 (November 1999), pp. 197-216.
- “A Reexamination of the Relationship Between Preferences and Moment Orderings by Rational Risk Averse Investors,” (with Patrick L. Brockett), Geneva Papers on Risk and Insurance Theory, Vol. 23, No. 2 (December 1998), pp. 127-137.
Working papers
Research impact
- "A New Stochastically Flexible Event Methodology with Application to Proposition 103” has been cited 35 times.
- “A Reexamination of the Relationship between Utility Functions, Risk Preference and Moment Orderings by Rational Risk-Averse Investors” has been cited 29 times.
Editorial Board Appointments
Recognition of research contributions also comes in the form of appointments to the editorial boards of academic journals. Listed below are my current and previous editorial board appointments.
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