Directors’ and Officers’ Liability Insurance and the Penalty of Internal Control Weakness

• Main Authors: YANG, CHIH-CHUN, 楊智鈞
• Other Authors: CHEN, CHING-LUNG
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/zwfjy6

碩士 === 國立雲林科技大學 === 會計系 === 107 === The occurrence of pently for firms with internal control weakness has attracted more attention in Taiwanese stocks market. Financial Supervisory Commission thus announced the blueprint of management in 2018 and emphasized the attention on the directors’ and officers’ liability insurance mechanism to improve corporate governance in Taiwan. Using the sample of listed firms in Taiwanese stocks market over the period of 2006-2017, this study examines the relationship between directors’ and officers’ liability insurance and the firm’s internal control weakness that is proxied by the penalty of Financial Supervisory Commission. The empirical results shows that directors’ and officers’ liability insurance is positively related to the penalty of internal control weakness by the Financial Supervisory Commission. It suggests that a firm’s directors’ and officers’ liability insurance boosts the possibility of internal control weakness.