Corporate Diversification, Ownership, and Solvency in China’s Property-Liability Insurance Companies

Table 5

The impact of geographical diversification (measured by entropy number) on solvency.

Variable	Full sample	Chinese-funded	Foreign-funded
	(1)	(2)	(3)
L.sol	0.034	0.005	0.041
	(37.819)	(3.663)	(17.084)
e-geodiv	−5.675	−9.064	1.734
	(−8.895)	(−41.251)	(0.900)
Size	5.967	8.041	0.049
	(6.064)	(25.270)	(0.039)
Age	−7.679	−4.586	−12.662
	(−4.767)	(−3.786)	(−5.881)
Payrate	1.971	6.469	2.128
	(7.991)	(3.403)	(1.298)
Rein	13.760	3.156	42.315
	(3.226)	(1.559)	(4.841)
ms	−65.050	−29.031	903.442
	(−0.842)	(−0.919)	(0.191)
Investrisk	−3.619	−1.817	−16.448
	(−2.334)	(−2.619)	(−1.605)
Gdpgrowth	29.942	11.278	136.345
	(1.599)	(0.544)	(5.726)
Constant	−11.977	−26.336	15.615
	(−1.613)	(−9.507)	(4.332)
N	268	178	98
AR (2) test	(0.531)	(0.982)	(0.696)
Sargan test	(0.204)	(0.213)	(0.949)

Note: ^∗∗∗ means , ^∗∗ means , and ^∗ means .