Directors'and Officers'Liability Insurance and Listed Companies'Abnormal Trading Halts
Using a sample of Chinese listed companies from 2002-2021,this research empirically investigates the impact of D&O liability insurance on listed companies'abnormal trading halts.The results show that D&O insurance has a significant restraining effect on the probability and duration of abnormal trading halts of listed companies.Mechanism tests show that D&O insurance can restrain listed companies from abnormal trading halts through alleviating the agency problem,improving corporate informa-tion transparency,and enhancing external monitoring.Further analyses reveal that the inhibitory effect of D&O liability insurance on abnormal trading halts is more significant in enterprises with higher proportion of managerial ownership and institutional shareholding,indicating that a better internal and external environment can promote the governance effect of D&O liability insur-ance.The results provide new empirical evidence for the corporate governance effect of D&O liability insurance.
NETL
NSTL
万方数据
