Directors' And Officers' Liability Insurance And Performance Of Enterprises

In the market environment where a large number of financial scandals of the listed companies happened,the directors and senior executives of the company are faced with unprecedented liability and litigation risk.The directors' and officers'liability insurance is also paid more and more attention.As one of the professional liability insurance,directors' and officers' liability insurance have special effect in corporate government which is not possessed by the general insurance products because of the particularity of the subject matter of insurance.The directors' and officers' liability insurance on the one hand as external supervisors can protect the interests of shareholders and to attract outstanding executive,optimize corporate governance structure,enhance performance of enterprises;on the other hand,Due to the characteristics of the insurance products themselves,may lead to moral hazard,induce managers to opportunistic behavior,thereby reducing performance of enterprises.Therefore,the relationship between directors' and officers' liability insurance and performance of enterprises requires empirical testing.This paper collects the demand data of directors' and officers' liability insurance in Shanghai and Shenzhen A-share listed companies since 2009,and the corporate governance data and financial data from 2009 to 2015,mainly using descriptive statistics,comparison between groups,correlation analysis and the method of regression analysis,this paper makes an empirical study on the relationship between directors' and officers' liability insurance and performance of enterprises.In addition,considering China's special political and economic background,this paper also joined the different nature of the enterprise group study.The research conclusion of this paper mainly has the following two points:First,the listed company to buy directors' and officers' liability insurance can enhance the performance of enterprises,thereby enhancing the value of the company,directors'and officers' liability insurance in China's listed companies mainly play its positive effect;Second,as state-owned enterprises have different organizational structure and governance structure with non-state-owned enterprises,the positive impact of directors' and officers' liability insurance on performance of enterprises is more significant than that of state-owned enterprises.Finally,this paper puts forward relevant policy suggestions from three aspects:the standard of executive liability insurance of unified directors,the improvement of directors' and officers' liability insurance legislation system,and public disclosure of information about directors' and officers' liability insurance.This is of great practical significance to the development of directors' liability insurance in our country.