D&amp;amp;O Insurers as ESG Monitors

Miazad, Amelia

doi:10.2139/ssrn.4222100

Cited by 1 publication

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“…As discussed in previous literature (Miazad, 2023; Yuan et al, 2016), D&O insurers could serve as corporate ESG monitors. The insurer assesses a firm's corporate governance practices and then controls its managerial behaviour through the clauses and pricing of D&O insurance contract (Baker & Griffith, 2007).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Does directors' and officers' liability insurance improve corporate ESG performance? Evidence from China

Tang

et al. 2023

Int. J Fin Econ

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We examine the causal effect of directors' and officers' liability insurance (D&O insurance) on environmental, social and governance (ESG) performance in China's listed firms. Using a unique data set on D&O insurance purchases in China, we document a positive relationship between D&O insurance and ESG performance, which is robust to a comprehensive battery of robustness checks including Heckman two‐step sample selection model, propensity score matching (PSM) model, instrumental variable approach, and fixed effects model. Further analyses suggest that the positive association is more salient for state‐owned enterprises (SOEs). Moreover, the path analysis provides evidence for the mediating effect of non‐financial information disclosure and corporate governance quality on the relationship between D&O insurance and ESG performance. Collectively, this study contributes to the literature on the economic benefit of D&O insurance by providing initial evidence that D&O insurance appears to enhance corporate governance and improve corporate ESG performance.

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Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Does directors' and officers' liability insurance improve corporate ESG performance? Evidence from China

Tang

et al. 2023

Int. J Fin Econ

View full text Add to dashboard Cite

show abstract

D&O Insurers as ESG Monitors

Cited by 1 publication

References 0 publications

Does directors' and officers' liability insurance improve corporate ESG performance? Evidence from China

Does directors' and officers' liability insurance improve corporate ESG performance? Evidence from China

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