TITLE

ON THE CORPORATE DEMAND FOR DIRECTORS' AND OFFICERS' INSURANCE IN CHINA

AUTHOR(S)
Rong Xu; Yining Zheng
PUB. DATE
November 2012
SOURCE
Actual Problems of Economics / Aktual'ni Problemi Ekonomìki;Nov2012, Vol. 137 Issue 11, p381
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Using a sample of Chinese listed firm with announcements of seeking D&O insurance, we find evidence to support that directors and officers with higher risk aversion will induce the listed firm to be more likely to purchase the D&O insurance, using the risk aversion measures such as working backgrounds, foreign share issues and controlling shareholder backgrounds. Our empirical results also reject the higher risk hypothesis, even using the same time period data with Zou et al. (2008). This research has potential contribution to both understanding of advantageous selection story of insurance demand and explanation of corporate demand for D&O insurance.
ACCESSION #
83752911

 

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