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Inherent virtue or inevitable evil : the effects of directors' and officers' insurance on firm value

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MARC record
Tag12Value
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001  MAP20190000918
003  MAP
005  20190111134123.0
008  190110e20180928esp|||p |0|||b|spa d
040  ‎$a‎MAP‎$b‎spa‎$d‎MAP
084  ‎$a‎332
100  ‎$0‎MAPA20190000383‎$a‎W. H. Fung, Derrick
24510‎$a‎Inherent virtue or inevitable evil‎$b‎: the effects of directors' and officers' insurance on firm value‎$c‎Derrick W. H. Fung,
520  ‎$a‎Whether directors' and officers' (D&O) insurance improves firrn value is a controversial issue. We perform a literature review about the effect of D&O insurance and find mixed results. The proponents of D&O insurance believe it enhances corporate monitoring and improves firm value, while the opponents of D&O insurance argue that it creates a moral hazard problem and diminishes firm value. Against this backdrop, we argue that the trade-off between the monitoring and moral hazard effects depends on the information acquired by the outside directors. Using a sample of listed Canadian firms, we find that (1) a change in D&O insurance coverage has no net effect on a firm's subsequent value when we ignore the information acquired by outside directors, (2) an increase in D&O insurance coverage improves a firm's subsequent value when the outside directors are well informed, and (3) an increase in D&O insurance coverage reduces a firm's subsequent value when the outside directors are poorly informed. Our findings are robust to endogeneity checks and have important implications for the regulation of D&O insurance
650 4‎$0‎MAPA20080633790‎$a‎Seguro de responsabilidad civil patronal
650 4‎$0‎MAPA20080556402‎$a‎Seguro D&O
650 4‎$0‎MAPA20080605742‎$a‎Directivos de empresas
650 4‎$0‎MAPA20080564049‎$a‎Riesgo moral
650 4‎$0‎MAPA20080591182‎$a‎Gerencia de riesgos
650 4‎$0‎MAPA20080590567‎$a‎Empresas de seguros
650 4‎$0‎MAPA20080562342‎$a‎Estadísticas
651 1‎$0‎MAPA20080638337‎$a‎Estados Unidos
7730 ‎$w‎MAP20077001748‎$t‎Risk management & insurance review‎$d‎Malden, MA : The American Risk and Insurance Association by Blackwell Publishing, 1999-‎$x‎1098-1616‎$g‎28/09/2018 Tomo 21 Número 2 - 2018 , p. 243-288