Effects of Directors’ and Officers’ Liability Insurance on Firm Value

• Main Authors: Jing-Tang You, 游景棠
• Other Authors: 蔡京姐
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/4g38q6

碩士 === 國立臺中科技大學 === 會計資訊系碩士班 === 105 === The objective of this study is to examine the relationship between directors’ and officers’ (hereafter D&O) liability insurance and firm value for firms listed in Taiwan for the period from 2008 to 2015. This study uses stock price and Tobin’s Q value to proxy for firm value and investigates the effects of D&O liability insurance purchase and the amount of insurance coverage on firm values. The empirical evidence shows that D&O liability insurance purchasers have higher firm values than non-purchasers. Further, firms with more D&O liability insurance limits have higher firm values. In sum, the empirical evidence demonstrates that D&O liability insurance is positively related with firm value and plays an effective corporate governance role in governing Taiwanese listed firms and thereby increasing firm values.