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| Reducing or Boosting?The D&O Insurance and the Risk of the Corporate litigation |
| HU Guoliu,QIN Shuai |
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Abstract The Director and Officer's Liability Insurance is introduced into the enterprise as a part of governance system，does it improve this system, thereby reduce the litigation risk? Or provide opportunities for the manager's opportunism motivation so as to boost the litigation risk? TBy using the data of Chinese listed companies between 2012-2014 as sample, based on the difference of the ownership，this paper studies the influence on the litigation risk after the introduction of the D&O insurance. This study has found that the introduction of the D&O insurance will boost the enterprise's litigation risk. However，this positive correlation is not significant in the state-owned enterprises，but very significant in the non-state-owned enterprises. Our research helps us to have a better understanding about the effect of D&O insurance and the influence of ownership, enriches the study of the impact factors of litigation risk and is significant for the enterprise litigation risk prevention.
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Received: 22 June 2016
Published: 15 November 2016
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Corresponding Authors:
QIN Shuai
E-mail: 18789262263@163.com
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2016, Vol. 
浙公网安备 33011802000512号