Directors’ and officers’ liability insurance and accounting conservatism: empirical evidence from China

IF 2.8 3区 管理学 Q2 BUSINESS, FINANCE
Wanjiao Jia, Shuoshuo Bi, Yingjie Du
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引用次数: 0

Abstract

Purpose This study analyses Chinese data to revisit the relationship between directors’ and officers’ (D&O) insurance and accounting conservatism, aiming to investigate the impact of investors’ legal protection on the function of D&O insurance. Design/methodology/approach The study sample included all A-share firms listed on the Shanghai and Shenzhen Stock Exchanges from 2006 to 2019. Multiple regression was used to investigate the association between D&O insurance and accounting conservatism. The Heckman two-stage model and the propensity score matching method were used to check the robustness of the main results. Findings D&O insured companies exhibited greater accounting conservatism. The higher the indemnity limit, the more conservative a firm’s earnings reporting. The positive correlation was stronger when investor protection was relatively weak. The impact of D&O insurance on accounting conservatism was stronger for companies with weaker internal or external supervision mechanisms. Originality/value The study findings show that D&O insurance plays a positive role in the governance of listed companies when investors’ legal protection is weak, which supports the effective supervision hypothesis of D&O insurance.
董事和管理人员责任保险与会计稳健性:来自中国的经验证据
目的通过对中国数据的分析,重新审视董事和高级管理人员保险与会计稳健性的关系,探讨投资者法律保护对董事和高级管理人员保险功能的影响。研究样本包括2006年至2019年在上海和深圳证券交易所上市的所有a股公司。采用多元回归分析方法探讨董事责任保险与会计稳健性之间的关系。采用Heckman两阶段模型和倾向得分匹配法检验主要结果的稳健性。调查结果显示,s&o保险公司表现出更高的会计稳健性。赔偿限额越高,公司的收益报告就越保守。当投资者保护相对较弱时,正相关关系更强。内部或外部监督机制较弱的公司,董事责任保险对会计稳健性的影响更大。研究结果表明,在投资者法律保护薄弱的情况下,董事责任保险在上市公司治理中发挥了积极作用,支持了董事责任保险的有效监管假说。
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来源期刊
CiteScore
5.40
自引率
13.80%
发文量
45
期刊介绍: The key areas addressed are: ■Audit and Assurance (financial and non-financial) ■Financial and Managerial Reporting ■Governance, controls, risks and ethics ■Organizational issues including firm cultures, performance and development In addition, the evaluation of changes occurring in the auditing profession, as well as the broader fields of accounting and assurance, are also explored. Debates concerning organizational performance and professional competence are also covered.
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