Búsqueda

Directors and officers liability insurance and default risk

Recurso electrónico / Electronic resource
Registro MARC
Tag12Valor
LDR  00000cab a2200000 4500
001  MAP20220011624
003  MAP
005  20220420104300.0
008  220419e20220404esp|||p |0|||b|spa d
040  ‎$a‎MAP‎$b‎spa‎$d‎MAP
084  ‎$a‎7
1001 ‎$0‎MAPA20220003964‎$a‎Huang, Li-Su
24510‎$a‎Directors and officers liability insurance and default risk‎$c‎Li-Su Huang
520  ‎$a‎This paper investigates the effects of directors and officers (D&O) liability insurance on default risk. Using unique panel data of non-financial listed firms in Taiwan from 2010 to 2017, the empirical results indicate that D&O insurance exerts a significantly positive influence on firms' expected default frequency (EDF), controlling for the endogeneity of D&O insurance coverage and fixed effects. Further analyses reveal that such an effect exists particularly among firms with a high D&O insurance coverage ratio. Firms with D&O insurance have higher default risk than those without. Our findings differ from those in the existing literature by showing that D&O insurance coverage reflects firms' EDF and by capturing more insight on firms' EDF (market value, stock return volatility and firm asset volatility). The evidence indicates that D&O insurance may serve as a real-time, publicly observable signal of default risk for insurers and investors, enabling better contracting and risk management.
650 4‎$0‎MAPA20100006429‎$a‎Directors and officers (insurance)
650 4‎$0‎MAPA20080591182‎$a‎Gerencia de riesgos
7730 ‎$w‎MAP20077100215‎$g‎04/04/2022 Volumen 47 Número 2 - abril 2022 , p. 378-408‎$x‎1018-5895‎$t‎Geneva papers on risk and insurance : issues and practice‎$d‎Geneva : The Geneva Association, 1976-