| Summary: | 碩士 === 國立高雄第一科技大學 === 風險管理與保險研究所 === 100 === Directors’ and Officers’（D&O）liability insurance is significantly important after the corporate scandals in recent years. Extensive debt lead to the corporation overnight declared bankruptcy via complex accounting and overestimate report of earnings and firm’s governance structure to lose monitoring role. Therefore, we knew that accounting principle and independent of firm’s directors’ and officers’（D&O）were important. In this study, the relationship of directors’ and officers’（D&O）liability insurance and voluntary disclosure on earnings conservatism. By this study to understand that the firm’s reporting of earnings practices whether have moral hazard, as well as voluntary disclosures corporate earnings whether firm’s governance structure have better to be more conservatism.
Using data of Taiwan Economic Journal and Market Observation Post System in Taiwan from 2008 to 2009. After examine the sample selection bias and Hausman test, empirical results show that under the fixed-effects model：After purchasing directors’ and officers’ liability insurance with the higher coverage are more likely practicing less conservative earnings. Besides, voluntary disclosures corporate with better governance structure and report of earnings trend to be more conservatively.
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