Directors' and Officers' Liability Insurance and Enterprise ESG Performance

MA Ya-ming; XU Hui-jie; WANG Yi-jie

Volume 39 Issue 4

Jul. 2024

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Article Navigation > Journal of Guangdong University of Finance & Economics > 2024 > 39(4): 70-84

MA Ya-ming, XU Hui-jie, WANG Yi-jie. Directors' and Officers' Liability Insurance and Enterprise ESG Performance[J]. Journal of Guangdong University of Finance & Economics, 2024, 39(4): 70-84.

Citation:

MA Ya-ming, XU Hui-jie, WANG Yi-jie. Directors' and Officers' Liability Insurance and Enterprise ESG Performance[J]. Journal of Guangdong University of Finance & Economics, 2024, 39(4): 70-84.

MA Ya-ming, XU Hui-jie, WANG Yi-jie. Directors' and Officers' Liability Insurance and Enterprise ESG Performance[J]. Journal of Guangdong University of Finance & Economics, 2024, 39(4): 70-84.

Citation:

MA Ya-ming, XU Hui-jie, WANG Yi-jie. Directors' and Officers' Liability Insurance and Enterprise ESG Performance[J]. Journal of Guangdong University of Finance & Economics, 2024, 39(4): 70-84.

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Directors' and Officers' Liability Insurance and Enterprise ESG Performance

1.
Tianjin University of Finance and Economics, Tianjin 300222
2.
China Center for Special Economic Zone Research, Shenzhen University, Shenzhen 518060, China

Received Date: 2024-04-02
Available Online: 2024-08-27
Publish Date: 2024-07-28

Abstract

Abstract

As the international community pays more attention to sustainable development, enterprises should also actively practice ESG concepts. As a risk hedging tool, how directors' and officers' liability insurance affects the ESG performance of enterprises is crucial to promote the sustainable development of enterprises. Based on the data of A-share listed companies in China from 2009 to 2021, this paper explores the effect and mechanism of directors' and officers' liability insurance on ESG performance of enterprises. It is found that directors' and officers' liability insurance can significantly improve the ESG performance of enterprises, and this conclusion is still valid after a series of robustness tests. Mechanism analysis shows that directors' and officers' liability insurance can improve ESG performance by increasing investment in green innovation, reducing managers' myopia and reducing agency costs. Heterogeneity analysis shows that the improvement effect of directors' and officers' liability insurance on ESG performance is more significant in non-state-owned enterprises, enterprises with high shareholding ratio of management, and enterprises with high media attention. The research reveals the positive role of insurance contracts in improving the performance of ESG, which provides useful policy suggestions for implementing ESG concepts and promoting high-quality economic development.
- directors' and officers' liability insurance,
- ESG performance,
- stakeholders,
- risk tolerance

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References(40)

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