We investigate the effect of risk management (reinsurance) on the corporate cost of equity using panel data drawn from the United Kingdom’s (UK) non-life insurance industry. Our results show that use of reinsurance lowers the cost of equity but that the relation is non-linear. We find that the rate of reduction declines as the level of premiums ceded relative to total gross premiums written increases. We also find that the reinsurance-cost of equity relation is moderated by the risk of financial distress/bankruptcy. This moderating relation is robust to the use of three alternative measures of financial distress and bankruptcy risk.

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风险管理和权益成本：来自英国非寿险市场的证据

我们使用来自英国 (UK) 非寿险行业的面板数据调查风险管理（再保险）对公司股权成本的影响。我们的结果表明，再保险的使用降低了股权成本，但这种关系是非线性的。我们发现，随着分出的保费水平相对于总承保保费的增加，减少率下降。我们还发现，股权关系的再保险成本受到财务困境/破产风险的影响。这种调节关系对于使用财务困境和破产风险的三种替代措施是稳健的。