Directors’ and Officers’ Liability Insurance and Resignation of Independent Director

• Main Authors: Ke, Jhih-Sin, 柯智馨
• Other Authors: Chang, Yuan
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/49d6wp

碩士 === 國立彰化師範大學 === 財務金融技術學系 === 108 === Based on data of listed non-financial companies on the Taiwan Stock Exchange and Taipei Exchange Markets covering the period of 2008~2017, this master thesis examines the linkage between Directors' and Officers' Liability Insurance (DOLI) and Resignation of Independent Directors. Existing research has documented the effect of DOLI on corporate performance and other economic consequences, but among them has rarely explored the impact of DOLI on the resignation of independent directors. While greater degree of DOLI coverage may protect independent from litigation risk and result in lower degree of independent director resignation, greater degree of DOLI coverage may imply and cover higher firm risk thus result in higher potential resignation of independent director. In the thesis, six proxy variables is employed to proxy the extent of DOLI coverage, and the resignation of independent directors is measured by three proxy variables. Through descriptive statistics, correlation analysis and multiple regression estimation, the empirical result is that the degree of DOLI coverage is positively correlated with the extent of independent director resignation.