Managers' Personal Characteristics And Directors' Liability Insurance Demand

Directors' and officers' liability insurance is one of the sub-insurances of professional liability insurance.Since 2002,directors'and officers'liability insurance has begun to protect the managers of Chinese companies.However,after more than a decade,the proportion of Chinese listed companies buying directors' and officers'liability insurance is still very low,and the effective demand is not enough.In this paper,it takes the Shanghai and Shenzhen A-share listed companies as the the research sample to deeply study the influencing factors of directors'and officers'liability insurance demand.What's more,it chooses Probit model to analyze the impact of management's personal characteristics on directors'and officers'liability insurance demand.The empirical results of this paper show that:(1)Listed companies with a high proportion of female manager tend to buy directors' and officers' liability insurance,which is consistent with the perception that women are more risk-averse and less prone to overconfidence.This results is tested by the level of significance in non-state-owned listed companies,while it isn't tested by the level of significance in state-owned listed companies.The reason may be related to the status of female directors and officers in state-owned companies and non-state-owned companies.There has an evidence the proportion of female chairman in non-state-owned listed companies is significantly higher than that of state-owned listed companies;(2)The greater the average age of management team,the less inclined to purchase directors' and officers' liability insurance.This conclusion is tested by significance level on both state-ovwned listed companies.and non-state-owned listed companies.(3)The impact of the management team' average academic qualification on the director's and officers'liability insurance isn't t passed the significant level test.However,after distinguishing the nature of the equity,the management's academic characteristics have a positive impact on director's and officers' liability insurance demand in the non-state-owned listed companiesFrom the conclusions of the paper,the personal characteristics of manager will indeed affect the directors' and officers' liability insurance.It analyzes one of the reasons for the insufficient effective demand for directors' liability insurance from a micro perspective.