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TITLE
"Key Man Insurance: An Empirical Investigation of Market Reaction," Journal of Insurance Issues, Chandy, P.R., W.N. Davidson, Sharon Garrison, and Dan L. Worrell, January 1986, Vol. IX, No. 1: 73-89.

ABSTRACT
The purpose of this article is to test empirically the impact of key executive death on the value of the firm's stock. For this purpose, data on 127 key executives who died over the period 1967 to 1981 was collected. These executives were from firms whose stocks traded on either the NYSE or the ASE. For the overall sample of executives, death appears to have little influence on security returns. The results indicate that for large firms the death of a key man has limited impact on the market value of the firm's stock. Hence, maintenance of the stock's market value does not appear to be an important reason for carrying key man insurance.