The Effects of Directors' and Officers' Liability Insurance on Earnings Conservatism

董監事責任保險對盈餘保守性之影響

10.6545/JFS.2015.23(1).3

周百隆(Pai-Lung Chou)；林兆欣(Chao-Hsin Lin)；許碩芬(Shuo-Fen Hsu)；楊傑安(Jie-An Yang)

董監事及重要職員責任保險 ； 自願性核閱 ； 盈餘保守性 ； 道德風險 ； Directors' and officers' liability insurance ； voluntary accounting review ； earnings conservatism ； moral hazard

財務金融學刊

23卷1期（2015 / 03 / 31）

57 - 83

英文

本文探討董事及重要職員責任保險的需求因素，及其與自願性核閱是否影響盈餘保守性。實證結果發現公司訴訟風險較高者，董監事（directors and officers, D&O）責任險需求也較高。其次，D&O責任險之保額愈高時，愈容易產生較不保守的盈餘報告。再者，自願性核閱會影響盈餘保守性，且與D&O責任險的購買存在互補關係。

We show that firms with greater litigation risk are more likely to purchase directors' and officers' (D&O) insurance. The data do not support the hypothesis that D&O insurance complements the existing monitoring mechanism. Instead, we find strong evidence that the higher the D&O liability coverage, which reduces the expected legal liability of directors and officers, the less conservative the firm's earnings. In addition, we find that firms that voluntarily choose to have a Certified Public Accountant (CPA) review tend to have fewer conservative earnings reports. Moreover, the demand for D&O insurance and the voluntary CPA review are complementary.

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