Research On The Relationship Between Directors' And Officers' Liability Insurance And Capital Efficiency

For the past few years,the practice risks and litigation risks faced by directors and officers of companies have gradually increased in the context of the rapid economic development of our country,the continuous reform of the capital market mechanism and the continuous improvement of the social legal system,with the frequent exposure of financial scandals in listed companies.Directors' and officers' liability insurance has begun to enter the company's horizons and has received more and more attention.Directors' and officers' liability insurance belongs to professional liability insurance.It is favored by the company for its ability to effectively reduce the risk of directors and officers' litigation risks.Capital efficiency can reflect the corporate governance efficiency from the aspects of capital output,capital allocation and capital investment.Therefore,it is urgent to study the relationship between the liability insurance and capital efficiency with the combination of the directors' and officers' liability insurance and capital allocation.Using a combination of normative analysis and empirical research,the thesis studies the relationship between directors' and officers' liability insurance and capital efficiency.The essay was divided into five chapters.The first chapter is the introduction,which mainly introduces the research background and significance,research ideas and framework,research methods and innovations,and makes a literature review.The second chapter is related concepts and definitions,which focuses on defining the directors' and officers' liability insurance and capital efficiency,and the theoretical research basis.The third chapter is the empirical research,which studies the relationship between directors' and officers' liability insurance and capital efficiency of Shanghai and Shenzhen A-share listed companies by using the method of empirical research.The fourth chapter shows the conclusions and recommendations of the thesis.The fifth chapter is the research's limitations and prospects.The study concludes that there is a positive correlation between the directors' and officers' liability insurance and capital efficiency,which means that the purchase of directors' and officers' liability insurance will improve capital efficiency,that with the higher the capital efficiency,the governance structure of the company will be more reasonable,and the governance efficiency will be higher.There is a significant positive correlation between directors' and officers' liability insurance and capital efficiency in growing companies,and the purchase of directors' and officers' liability insurance by growing companies has a positive impact on capital efficiency.Compared with state-owned companies,the influence of directors' and officers' liability insurance on capital efficiency is more obvious in non-state-owned companies.Based on the characteristics of corporate governance and directors' and officers' liability insurance,non-state-owned companies' purchase of directors' and officers' liability insurance is more in line with the demand motivation.Innovatively studying the relationship between the directors' and officers' liability insurance and capital insurance from the aspects of research method,research perspective and research content,this paper puts forward suggestions for the further promotion of directors' liability insurance in China.