The Effect of Directors’ and Officers’ Liability Insurance on the Future Earnings Response Coefficient

• Main Authors: Ching-Ming Liu, 劉慶名
• Other Authors: HSIEN-LI LEE
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/22nj6n

碩士 === 中原大學 === 會計研究所 === 105 === It is a short period of time that we, Taiwan, introduced Directors’ and Officers’ (D&O) Liability Insurance. Besides, it is difficult to get early insurance data. There-fore, the D&O liability insurance related research is not much. Taiwan government, since 2008, asked Listed and OTC Companies expose the corporate insurance infor-mation at Market Observation Post System ( MOPS). Moreover, it is free to get corporate insurance information from MOPS. It is benefit for research and analysis by tremendous increase number of sample. This paper probed into the relationships between the D&O Liability Insurance in-formation and the future earnings response coefficient of the domestic listed and OTC companies from 2011 to 2012. The method used the Heckman’s two-stage regression model about endogeneity problem and then test and verify the future earnings response coefficient according of Lundholm and Myers(2002). It shows that the results are positively correlated and the liability insurance of the supervisor of the company can help the investors to forecast the future surplus and reflect the future earnings information in the current sotck price compensation to support the research hypothesis.