The Relationship Between Director’s and Officer’s Liability Insurance and Post-Issue Operating Performance of IPO Firms
碩士 === 國立臺北大學 === 會計學系 === 103 === Because of the more serious information asymmetry, initial public offering (IPO) investors make it difficult to assess the company's future operating performance and the potential risks. Directors’ and officers’ liability insurance (D&O insurance) is c...
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| Format: | Others |
| Language: | zh-TW |
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2015
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| Online Access: | http://ndltd.ncl.edu.tw/handle/16418371286258824925 |
| Summary: | 碩士 === 國立臺北大學 === 會計學系 === 103 === Because of the more serious information asymmetry, initial public offering (IPO) investors make it difficult to assess the company's future operating performance and the potential risks. Directors’ and officers’ liability insurance (D&O insurance) is closely linked to corporate governance, thereby affecting the operating performance. Therefore, using data on D&O insurance heareafter policies gathered from a sample of IPO firms of Taiwan, this article aims to examine the relationship between D&O insurance and post-issue operating performance of IPO firms. The proxy variable of operating performance in the article is ROE. We provide consistent evidence that there was a significant positive relation between the post- IPO operating performance decline rate and the amount of D&O insurance coverage in place at the IPO year.
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