如何管理現金持有部位對於企業管理來說是一個十分重要的課題，本篇論文欲探討在亞洲的台灣以及韓國產險公司對於現金持有部位行為的差異。之前使用美國產險公司1993到1995進行的研究確實發現了一些會影響現金持有行為的決定性因素。
    本篇論文透過使用台灣以及韓國從2002到2009這八年來的數據，我們系統的透過不同的因素檢驗了在兩國的產險公司中現金持有行為上產生的差異。
    實證結果指出有資產規模較大的產險公司持有較少的現金持有量，持有較多普通股部位的產險公司持有較少的現金持有部位。ROE和再保險比率在台灣部份會造成影響對韓國則否，在台灣，產險公司ROE較高以及再保險比率較高者會持有較少的現金持有部位。兩個實驗中的虛擬變數：是否是集團成員、是否是本國企業，都不會造成公司決定現金持有部位的影響。實證結果顯示在台灣擁有較高度槓桿的產險公司會持有較小的現金持有部位，但是在韓國則相反，韓國擁有較高度槓桿的產險公司則會持有更多的現金部位。
    本篇論文主要的目的是檢證台灣以及韓國產險公司會對於現金持有行為造成影響的一些決定性因素，而本文的實證結果確實發現在台灣以及韓國這兩個國家的產險公司的確存在不同的因素會對於現金持有行為造成不同的影響。

This study investigates the differences in cash holdings across P&L insurers in two asian countries, Taiwan and South Korea. Previous papers use the P&L insurers in US from 1993 to 1995 to investigate determinants of cash holding. They found P&L insurers with some characteristics that hold less cash.
In this paper, we extend the literature to study the determinants of cash holding for P&L insurers in a developing insurance market. For our purposes, the dependent variable in the regression model is insurer’s cash holding. By using eight years of data in Taiwan and South Korea, we examine whether the differences in cash holdings across insurers can be systematically explained by different characteristics of P&L insurers. 
Our empirical results support that larger P&L insurers hold less cash than smaller P&L insurers in Taiwan and Korea. The P&L insurers with higher proportion of common stock will hold less cash. The P&L insurers have better ROE and higher reinsurance ratio hold less cash in Taiwan, but not in South Korea. Two dummy variables, affiliated membership group and foreign company, have no impact on cash holding decisions. The empirical results support that highly levered insurers hold less cash in Taiwan, but highly levered insurers hold more cash in Korea. The result find that insurers have higher expense ratio hold less cash in Taiwan and insurers have higher expense ratio hold more cash in South Korea. 
The main purpose of this essay is investigating the determinants of cash holding for P&L insurers in Taiwan and South Korea. We truly observe there exist significantly different factors influencing cash holding behavior of P&L insurers between these two countries.

Contents
1. Introduction	2

2.Literature Review	7

3. Data Resource, Variable Definitions and Empirical Model	10

3.1 Data Resource	10

3.2 Variable Definitions	10

3.3 Empirical Model	18

4. Summary Statistics and Empirical Results	19

4.1 Summary Statistics	19

4.2 Empirical Results	23

5. Conclusion	30

Reference	34












Figures of Content
Figure 1 Insurance Density………………………………………………………… 3

Figure 2 Insurance Penetration ……………………………………………………4

Figure 3 Insurance Premium Income………………………………………………4

Figure 4 Relationship between Cash, Capital Structure, and Expense Ratio…… 29

 

Tables of Content
Table1 Summary Statistics for the ratio of cash holding …………………………11

Table 2 Variables and Definitions ………………………………………………16

Table 3 Summary Statistics of property-liability insurers in Taiwan………………21

Table 4 Summary Statistics of property-liability insurers in Korea………………22

Table 5 Regression Empirical Results (ROE)……………………………………27

Table 6 Regression Empirical Results (ROA)……………………………………28

Table 7 Firm Information …………………………………………………………32

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