A Study Of The Impact Of D&O Insurance On The Enterprise Value Of Company S

In recent years,there have been frequent financial scandals in listed companies,and the risks and tests faced by management have increased.In this context,directors and officers liability insurance began to appear in the public eye.directors and officers liability insurance is often referred to as "D&O insurance".It is a kind of professional liability insurance,which is usually used to protect the reasonable and legitimate rights and interests of managers.Different from the long history in Europe and the United States,the application time of D&O insurance in China is much smaller than that in Europe and the United States.In recent years,the overall participation rate of D&O insurance of Shangchai and Shenzhen A-share listed companies is still in a low state.At present,the academic circles hold that D&O insurance has the function of risk transfer and compensation mechanism,which makes investors’ attitude towards risk changed when buying stocks,and then has an impact on the value of enterprises,but whether this impact is promoted or reduced has not reached a unified conclusion.At present,the impact of this effective risk management tool on enterprise value is different,mainly based on the"external supervision hypothesis" and"opportunity hypothesis" and other hypothesis theories to form two kinds of views.Based on this,this paper combs the development process of D&O insurance in the United States,Germany and China.After that,by combing the research results of past scholars,according to the data of Shanghai and Shenzhen A shares listed in Shanghai and Shenzhen,which were disclosed from January 1,2015 to December 31,2022,this paper analyzes the overall development of this kind of insurance and the distribution plate,industry,property right nature of the insured enterprises and the differences in the listed areas of the company.In order to effectively interpret the development of this kind of insurance in China.This paper also uses the event research method,selects S company as the case company to carry on the research,from the time window angle,in the concrete enterprise level to explore the D&O insurance to the enterprise value influence.Based on the analysis of specific cases,this paper probes into the problems existing in the development process of D&O insurance,and on this basis,puts forward some suggestions on the concrete application mode and path development method of D&O insurance in the enterprise entity,and provides the theory and experience that can be used for reference for the enterprise to use D&O insurance when the development of D&O insurance is still immature.Through the study,this paper draws the conclusion that the purchase of D&O insurance can promote the value of the enterprise to a certain extent,but with the increase of the year of insurance,this effect will decrease.At the same time,as an important corporate governance mechanism,D&O insurance is in urgent need of development,and still needs to be widely promoted and improved.In the short history of the development of D&O insurance,the relevant research is still insufficient,this paper substantiates the relevant research of D&O insurance.At the same time,from the perspective of case companies,this paper analyzes the impact of D&O insurance on short-term enterprise value,which enriches the research on the factors affecting enterprise value.