An Empirical Research On The Impact Of Directors And Officers Liability Insurance On Enterprise Debt Financing

In recent years,repeated financial fraud.let the management of the company face the risk of litigation.Directors and executives have become increasingly stressed in their work in the enterprise,and they need an insurance mechanism to disperse the potential losses in their practice decision-making process.The introduction of directors' liability insurance is in line with the current employment requirements of directors.Director' and Officers 'Liability Insurance is essentially occupational liability insurance.The purchaser can be enterprises,can also be a director and other senior management of the enterprise,the liability insurance is mainly used for directors or executive officers work due to the negligence or misconduct by stakeholders shall be investigated for economic responsibility,make insurance unit to pay the relevant legal expenses,and assume corresponding civil compensation.The insurance as a hedging mechanism and compensation mechanism,can effectively alleviate the management practice in the process of facing the risk aversion tendencies,reduce the concerns of the Banks and other creditors to the enterprise bankruptcy risk,which affects corporate debt financing decision,is worth exploring.Based on the Shanghai and shen zhen A shares in China from 2010 to 2016 data of listed companies as research samples,empirically the executive directors liability insurance for the enterprise level and the influence of debt maturity structure of debt financing,and further study of the nature of property right,the different growth level adjustment.By studying the following conclusions:(1)the executive directors liability insurance and enterprise and debt maturity structure is related to the level of debt financing can improve enterprise debt financing level,make it easier for companies to obtain long-term borrowing;(2)the regulation of different property rights,the state-owned enterprises of executive directors liability insurance and the level of debt financing is correlation between the inhibition,but promotes the executive directors liability insurance and corporate debt maturity structure is positive correlation;(3)under the action of different enterprises growth level adjustment,in low growth enterprise group,the executive director liability insurance and theenterprise level,the debt maturity structure of debt financing positive correlation will be enhanced.In this paper,the research conclusion will help expand and related research in the field of executive directors liability insurance,is deepen and enrich the existing research,is also the influencing factors related research on debt financing supplement and perfect.The conclusions of this paper can provide theoretical reference for enterprises' investment and financing decisions,and provide policy Suggestions for improving the relevant laws and regulations in the capital market and improving the management mechanism of directors' liability insurance.