QFII,D&O Insurance And Corporate Value

As a transitional system in the emerging market countries to attract foreign investment and gradually open up their capital markets,Qualified foreign institutional investors (QFII)system, has accumulated a lot of practical experience in order to promote the orderly opening of the capital market. At the same time, QFII as a foreign institutional investors can also improve the level of corporate governance in China and improve the performance of the company to provide experience. Learn from the successful experience of foreign countries, China's introduction of the QFII system in 2002. With the gradual expansion of the amount of QFII in China, QFII has a greater impact on China's capital market and corporate governance. Based on China's national conditions, scholars have studied the role of QFII in corporate governance and the relationship between the value of the company,formed a different point of view, has not yet reached a consensus.The D&O Insurance was born in the United States has been developing for more than 80 years, foreign scholars have confirmed that the two-way role of the D&O Insurancehas the effect of opportunism and external supervision effect in corporate governance. In 2002,the introduction of D&O Insurance in China is not high. The specific role of the D&O Insurance in China's corporate governance is not clear, it is worth exploring.With the opening up of China's capital market level, there will be a large number of QFII to enter, while the market risk of listed companies to increase the attractiveness of D&O Insurance will enhance. The future of QFII and D&O Insurance in the listed company will coexist is very common, therefore, influence on the value of Listed Companies in two to explore, to provide reference for QFII and D&O Insurance development in China.This paper uses 2011-2015 China A shares listed companies as the research sample data, combined with the related theory, analyse the relationship among QFII, D&O Insurance and the value of the company. The empirical results show that QFII can effectively improve corporate governance, enhance the corporate value; the sample corporate purchase of D&O Insurance, will be conducive to the improvement of corporate governance, reduce the sample company. Therefore, on the one hand, China should gradually relax on the regulation of QFII to improve the governance structure of listed companies, on the other hand, China's enterprises should be treated as a tool to improve corporate governance by the D&O Insurance.