Research On The Influence Of D&O Insurance On Green Technology Innovation Of Listed Companies

China has entered a new era of green development,and as the main body of the market economy,enterprises have an inescapable social responsibility in balancing economic and environmental benefits.Although enterprises can gain greater competitive advantages and improve their own economic benefits through green technology innovation activities,because of the high initial investment cost,the management of enterprises often prefer short-term projects with less risk and higher profits due to professional considerations,avoiding high-cost green technology innovation activities.As an important external management incentive for enterprises,Directors and Executives Liability Insurance(hereinafter referred to as "D&O Insurance")can effectively restrain the short-sighted behavior of enterprise management,alleviate their practice risks,and stimulate the enthusiasm of enterprise executives in decision-making.Therefore,it is necessary to research on the impact of the purchase of directors’ liability insurance on the green technology innovation of enterprises,and to clarify the path based on which D&O insurance affects the level of green technology innovation of enterprises.For enterprises with different property rights,there are differences in the impact of D&O insurance.All of these are helpful for listed enterprises to have a deeper understanding of D&O insurance and provide reference suggestions for listed enterprises to introduce D&O insurance.It is of great significance to promote the green technology innovation level of listed companies and carry out D&O insurance in China’s insurance market.This paper reviews the relevant domestic and foreign literature research,and first clarifies the concepts of green technology innovation and D&O insurance.Secondly,Secondly,the development status and basic history of green technology innovation and D&O insurance in China are analyzed and summarized in combination with relevant data.Based on high-order theory,principal-agent theory,insurance demand theory and other theories,this paper puts forward research hypotheses on the influence mechanism of D&O insurance on enterprise green technology innovation.Thirdly,this paper uses the data of 1627 listed companies from 2011 to 2020 to empirically test the hypothesis proposed in this paper.The final results show that:first,the green technology innovation level of listed enterprises can be significantly improved by purchasing D&O insurance;secondly,D&O liability insurance can promote green technology innovation by improving management efficiency;third,compared with state-owned enterprises,non-state-owned enterprises can significantly improve their green technology innovation level by purchasing D&O insurance.Finally,based on empirical analysis,this paper puts forward corresponding countermeasures and suggestions from three aspects: listed companies,insurance companies and regulatory authorities,in combination with the development status and problems of D&O insurance in China.