An Empirical Investigation of the Japanese Corporate Demand for Insurance

Although numerous theoretical articles investigate factors affecting corporate demand for insurance, empirical tests of the theories are very limited. This article is one of the first attempts to empirically investigate the demand for general insurance of non-financial corporations by using data on Japanese corporations. Regarding insurance demand of Japanese corporations, size, leverage, and regulation are important factors in determining insurance purchases by large Japanese firms, whereas ownership structure and tax consideration are not.