Research On The Impact Of Directors And Executives Liability Insurance On Corporate Strategic Positionin

Since 2020,the financial fraud cases of luckin Coffee,Kangmei Pharmaceutical and other well-known enterprises have brought the market’s attention to Directors’ and Officers’ liability insurance(D&O Insurance)to an unprecedented climax,and corporate managers have gradually realized that professional liability insurance plays an important role in the construction of enterprise risk management system.In addition,the implementation of the new Securities Law not only improves the openness and activity of China’s capital market,but also puts forward higher requirements for enterprises to formulate scientific development strategies.The Regulation measures of Liability Insurance Business also actively encourages rational use of liability insurance to serve the long-term construction of the overall economic and social situation.Under the dual influence of hot cases and relevant laws and regulations,the number of enterprises applying for D&O Insurance in China has increased sharply in the past two years,which proves that this kind of insurance has great development potential in the insurance market.It is of urgent practical significance to study the influence effect of D&O Insurance on corporate strategic positioning.In view of this,based on the panel data of A-share listed companies from 2006 to 2020,this paper studies the impact of D&O Insurance on corporate strategic positioning in China’s market economy environment.Firstly,the connotation of D&O Insurance and corporate strategic positioning is understood and elaborated by combing existing research results,and research hypotheses are proposed based on relevant theoretical basis and influence mechanism,and variables are set according to the current situation of D&O Insurance in The Chinese market and purchase characteristics of enterprises.Secondly,through VIF multicollinearity test,Pearson and Spearman correlation coefficients were calculated to analyze the correlation between variables,and then multiple regression analysis was conducted on the sample data as a whole and in groups.Heckman two-stage regression and propensity score matching were used to test the robustness of regression results.Finally,this paper discusses the mediating effect of corporate internal control quality on the influence of D&O Insurance on corporate strategic positioning in further research.This paper draws the following conclusions through empirical study: D&O Insurance has a significant restraining effect on the aggressiveness of corporate strategic positioning;The effect of D&O Insurance on corporate strategic positioning is significantly different in different industries with different competition degree and different effectiveness of external supervision.The quality of corporate internal control plays a partial intermediary effect in the binding relationship between D&O Insurance and the radicalization of corporate strategic positioning.Based on the above conclusions and the development status of D&O Insurance,this paper puts forward some suggestions,such as optimizing the insurance system and services,strengthening the scientific understanding of liability insurance in the market,and rationally utilizing the influence of D&O Insurance to improve the enterprise strategy making mechanism.