New Trouble to Enterprise Independent Innovation

Start with the Claims to be Brought Against Luckin

DOI

10.2991/assehr.k.210513.060How to use a DOI?

Keywords

Corporate Governance, Directors and Officers’ Liability Insurance, Corporation Innovation

Abstract

Recently, more and more enterprises adopted Directors and Officers Liability Insurance (hereinafter referred to as D&O) in order to lower managers’ risks and strengthen external supervision of management. However, the excessive protection for directors’ and officers’ negligence could probably restrain the enterprises innovation. This paper uses data of A-share listed companies in China from 2008 to 2019 to verify this process, found that: after controlling the selective bias, the purchase of the D&O will still inhibit the enterprises innovation input. The innovation of this paper lies in the indication of the possibility that D&O induces moral hazard and opportunistic behaviour nowadays should not be underestimated, it inevitably leads a crowding-out effect to enterprise innovation input, which is rarely involved in previous studies. Except to this, the heterogeneity between China and U.S. in terms of securities market rules and business legal environment should be another important aspect to pay attention to in the process of Sinicization of D&O.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Hongmin Zhang
AU  - Jing Liang
PY  - 2021
DA  - 2021/05/14
TI  - New Trouble to Enterprise Independent Innovation
BT  - Proceedings of the 6th International Conference on Education Reform and Modern Management (ERMM 2021)
PB  - Atlantis Press
SP  - 259
EP  - 262
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210513.060
DO  - 10.2991/assehr.k.210513.060
ID  - Zhang2021
ER  -