Directors'Executive Liability Insurance,Independent Directors'Performance Level and Corporate Diversity Strategy——Empirical Analysis Based on Data of A-share Listed Companies in Shanghai and Shenzhen
Director and executive liability insurance is an important governance mechanism of a company,aimed at help-ing decision-makers avoid partial performance risks,enhancing their enthusiasm for participating in corporate governance,and thus promoting the scientific level of enterprise decision-making.In view of this,this article empirically examines the relation-ship and impact mechanism between director liability insurance,independent director performance level,and corporate diversi-fication strategy based on relevant data of A-share listed companies in China from 2008 to 2020.The research results indicate that purchasing director's liability insurance can promote the implementation of a company's diversification strategy and im-prove its level of diversification.At the same time,purchasing director's liability insurance can also enhance the performance level of independent directors,and the performance level of independent directors plays a mediating effect in the process of pur-chasing director's liability insurance and improving the company's diversification strategy level.Therefore,it is necessary to promote the promotion of director's liability insurance in China and appropriately encourage relevant enterprises to purchase di-rector's liability insurance.Improve the selection,incentive,and constraint mechanisms for independent directors,ensure their independence,and enhance their enthusiasm and effectiveness in fulfilling their duties.At the same time,enterprises should improve their governance structure,play the important role of independent directors,strengthen internal and external supervi-sion,establish and improve relevant legal systems,and thus promote the continuous development of the social economy.
director and executive liability insurethe performance level of independent directorsmediating effect
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