Research On The Influence Of D&O Liability Insurance On The Sustainability Of Enterprise Innovation

In the face of an increasingly complex and uncertain external environment,the sustainability of innovation is of vital importance for enterprises.It is not only the basis for enterprises to build dynamic competitive advantages,but also the key to China’s innovation-driven strategy.However,in the context of economic globalization and the expanding breadth and depth of open innovation,the lack of scientific and technological innovation has become a major problem restricting the sustainable development of latecomer economies.How to maintain innovation sustainability and enhance innovation momentum is an urgent issue to be addressed nowadays.The ability of enterprises to sustain innovation is affected by many factors.As an effective ex-ante institutional arrangement and safeguard,D&O liability insurance reduces the risk of loss in the event of failed innovation decisions by executives,enhances management’s risk-taking ability,and has a key impact on the choice of corporate strategy and its stable implementation,which in turn has a positive impact on innovation sustainability.However,few scholars have focused on the impact of D&O liability insurance on innovation sustainability in existing studies on its economic consequences.Based on this,this thesis empirically examines the relationship between D&O liability insurance and corporate innovation sustainability and its impact path,as well as the moderating role of managerial power,using A-share listed companies in Shanghai and Shenzhen from 2015-2021 as the research sample.The empirical results show that: D&O liability insurance has a facilitating effect on corporate innovation sustainability;the positive effect of D&O liability insurance on innovation sustainability decreases with the increase of managerial power;internal control and financing constraints have the multichain intermediary effect between D&O liability insurance and the sustainability of enterprise innovation;the effect of D&O liability insurance on the sustainability of innovation is more significant in the samples with financial distress,high level of IP protection and high government subsidies;the higher the rate of D&O liability insurance,the more it increases the sustainability of innovation investment;both D&O liability insurance increases the sustainability of substantive and strategic innovation,and has a more significant effect on the sustainability of substantive innovation.The contributions of this thesis include: firstly,the impact of D&O liability insurance on innovation sustainability was studied from the perspective of D&O liability insurance,which expands the research on the factors influencing corporate innovation sustainability;secondly,the study of the moderating role of managerial power,which enriches the situational factors of the influence of D&O liability insurance on the sustainability of enterprise innovation;thirdly,the study of the mechanism of D&O liability insurance on corporate innovation sustainability using a chain multiple mediating effects model;fourthly,the introduction of the perspective of D&O liability insurance rates,which deepens the target research on D&O liability insurance indicators.The findings of this thesis enrich the research on D&O liability insurance and corporate innovation sustainability,and help companies to properly introduce and apply D&O liability insurance,providing some meaningful theoretical and practical guidance to effectively enhance corporate innovation sustainability.