| Autor: |
Jiamin Liu, Yalin Jiang, Shengdao Gan, Ran Chen |
| Jazyk: |
angličtina |
| Rok vydání: |
2022 |
| Předmět: |
|
| Zdroj: |
China Journal of Accounting Research, Vol 15, Iss 4, Pp 100271- (2022) |
| Druh dokumentu: |
article |
| ISSN: |
1755-3091 |
| DOI: |
10.1016/j.cjar.2022.100271 |
| Popis: |
The governance effects of directors’ and officers’ liability insurance (D&O insurance), an important tool for risk diversification, are of strong concern in the capital market. Using a sample of Chinese A-share listed firms from 2009 to 2018, we examine the impact of D&O insurance on excess corporate leverage. We find that D&O insurance is negatively associated with excess corporate leverage and that this result is consistent with a series of robustness tests. Further analyses show that D&O insurance impedes excess corporate leverage mainly because of its effect on external monitoring. The effect is more pronounced for firms that are state-owned, have political connections and are located in provinces with low marketization than for other firms. |
| Databáze: |
Directory of Open Access Journals |
| Externí odkaz: |
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