PLreg (version 0.4.1)

Firm: Firm Cost

Description

A dataset on risk management practices of 73 firms.

Usage

data(Firm)

Format

A data frame with 73 rows and 7 variables:

firmcost

total property and casualty premiums and uninsured losses as a percentage of total assets.

assume

per occurrence retention amount as a percentage of total assets.

cap

indicates that the firm owns a captive insurance company; 1 if the firm uses a captive, 0 otherwise.

sizelog

logarithm of total assets.

indcost

a measure of the firm's industry risk.

central

a measure of the importance of the local managers in choosing the amount of risk to be retained.

soph

a measure of the degree of importance in using analytical tools.

Details

The dataset was introduced and analyzed by Schmit and Roth (1990) and is available in the personal web page of Professor E. Frees (Wisconsin School of Business Research). The response variable is FIRMCOST, smaller values of firm cost are attributed to firms that have a good risk management performance.

References

Schmit, J.T. and Roth, K. (1990). Cost effectiveness of risk management practices. Journal of Risk and Insurance. 57:455-470.

Examples

data("Firm")
fitPL <- PLreg(firmcost ~ sizelog + indcost | sizelog + indcost,
              data = Firm,
              family = "SLASH",
              zeta = 2.13)
summary(fitPL)
plot(fitPL, type = "standardized")