Directors And Officers’ Liability Insurance、debt Maturity Structure And Stock Price Crash Risk

The A-share market has always been a hot spot in China’s capital market.We often see stock prices falling shortly in the short-term,and this stock-falling fall is our so-called stock price crash risk.The reason is that the management of the listed company will conceal the company’s bad news and major risk information for its own benefit.In addition,because of information asymmetry,it is difficult for investors to know whether the company is hiding information.With the accumulation of adverse information,once a certain threshold reached,it will burst like a bubble,and there will be no sign of a sharp drop in share prices.The risk of stock price collapse is very harmful.It will not only directly affect the interests of investors and frustrate the development of companies,but also threaten the stability of the whole capital market.Because of the late development of the capital market,Chinese stock market has not yet formed a relatively perfect system,so the stock price plunges frequently.Therefore,it is urgent to study and find effective ways to prevent the risk of stock price crash.Debt maturity structure is an important aspect of enterprise financing decision-making,which will directly affect the operation and management of enterprises.The governance effects of different debt maturities are also different.Analyzing reasonable debt maturity structure from the dimension of enterprise development is more conducive to enterprise development and create greater value.At present,domestic enterprises generally tend to short-term debt financing.The research topic will help enterprises optimize their debt maturity,and then enhance the value of enterprises.Through collating the literature,it is found that few scholars link the risk of stock price crash with debt maturity structure when they study the risk of stock price crash.In addition,the role of director and officer liability insurance in corporate governance is not uniform.This paper will stand on the perspective of the preference of borrowing term of listed companies,to explore the relationship between debt maturity and stock price crash risk,and then introduce director and officer liability insurance,and then discuss the role of director and officer liability insurance about corporate governance.