D&O Insurance,Investor Protection And Enterprise Technology Innovation

In today's era,the development of our country and society can not be separated from the development and innovation of science and technology,mastering the initiative can lead us in the economic development.In recent years,our Chinese government and enterprises have begun to attach great importance to technological innovation.A sound investor protection mechanism is conducive to reducing the cost of equity financing,investors are willing to provide ffunds actively,enterprises get more innovative funds,and put them into innovative projects.Directors' senior managers' liability insurance has been developing for more than ten years in China,and its corporate governance is attracting more and more attention from academia and practitioners.D&O Insurance mitigates corporate governance's "Agency problem" and "Asymmetric information" problems from"External supervision" and "Signaling" two aspects,helps to improve the corporate governance system,and plays a positive moderating effect on investor protection and corporate technology innovation.Moreover,corporate ownership reform has always been the focus of government.State owned enterprises' marketization and innovation enthusiasm are slightly less than those non state holding enterprises.Under this special institutional background,it is urgent for us to discuss whether the Directors' and Officers'Liability Insurance can really play an effective role in companies with different property rights.Based on corporate governance,we used the 2011-2016 A-share companies datas as the research sample,to investigate Small and Medium Investor Protection's impaction on Enterprise Technological Innovation.Connected with Directors' and Officers' Liability Insurance,discussed whether D&O insurance would influence the relationship between that two elements.Considering the particularity of our market economy,we distinguishes the nature of property rights,and study whether the before three variables' relationships was effected.Realized:(1)Small and medium investor protection is conducive to technological innovation;(2)Relative to the state-owned holding company,the protection of small and medium investors is more effective in promoting technological inno-vation in non-state-owned holding company;(3)D&O insurance helps to strengthen Small and Medium Investor Protection's promotion in Enterprise Technological Innovation;(4)In non state-owned holding companies,the purchase of D&O insurance can significantly enhance the promotion function.This builded the relationships between Small and Medium Investor Protection and Enterprise Technological Innovation,and based on the nature of property rights,investigated the role of D&O insurance on corporate governance.Our research has two following contributions:(1)The protection of small and medium investors is included in the scope of the research on the influencing factors of enterprise technological innovation,to explore whether the protection of small and medium investors affects the enterprises' technological innovation,and the impact of the path and the implementation mechanism.It enriches and develops the research theory of small and medium investor protection and enterprise technological innovation,promotes the long-term healthy development of China's capital market environment,provides guidance for the development of Chinese enterprises' technological innovation,and provides support for small and medium investors to make reasonable investment plans;(2)Investigate the effect of purchase D&O insurance on the protection of small and medium investors and the enterprises' technological innovation.This paper expands the research scope of D&O insurance and provides empirical evidence support for the promotion and application of D&O insurance in China,so as to provide guidance for managers.