-
Journal menu
- General information
- Editorial Board and External Reviewers
- Journal Policies
- Publication Ethics and Malpractice Statement
- Instructions for authors
- Paper reviewing
- Article processing charge
- Feedback from stakeholders
- Journal’s Open Access statement
- Order hard copies of the journal
- 50 most cited papers in the journal
Does directors and officers (D&O) liability insurance help a company increase efficiency during the COVID-19 pandemic?
Download This Article
Chia-Wei Chen 
, Yuwei Wang
This work is licensed under a Creative Commons Attribution 4.0 International License.
Abstract
This study examines the relationship between firms’ directors and officers (D&O) liability insurance and firm performance during the COVID-19 pandemic in Taiwan. It has been found that while the COVID-19 pandemic has had a negative impact on firm performance, D&O insurance indeed significantly mitigates this negative impact. Specifically, with 2,924 firm-year observations of 1,462 listed firms in Taiwan in the years of 2018 and 2020, we show that D&O insurance reduces the negative impact of the COVID-19 pandemic on net operating revenue by approximately 20 percent for insured firms. The main contribution of this article is that it provides valuable information for firms and investors by providing direct evidence that clearly shows the association between D&O insurance and firm performance during unexpected significant external shocks such as a pandemic.
Keywords: Directors and Officers Liability Insurance, D&O Insurance, Firm Performance, COVID-19, Pandemic, Taiwan
Authors’ individual contribution: Conceptualization — C.-W.C. and Y.W.; Methodology — C.-W.C. and Y.W.; Software — C.-W.C. and Y.W.; Validation — C.-W.C. and Y.W.; Formal Analysis — C.-W.C. and Y.W.; Investigation — C.-W.C. and Y.W.; Data Curation — C.-W.C. and Y.W.; Writing — Original Draft — C.-W.C.; Writing — Review & Editing — Y.W.; Visualization — C.-W.C. and Y.W.; Supervision — C.-W.C. and Y.W.; Funding Acquisition — C.-W.C. and Y.W.
Declaration of conflicting interests: The Authors declare that there is no conflict of interest.
JEL Classification: G0, G2, G3
Received: 07.03.2024
Accepted: 04.07.2024
Published online: 08.07.2024
How to cite this paper: Chen, C.-W., & Wang, Y. (2024). Does directors and officers (D&O) liability insurance help a company increase efficiency during the COVID-19 pandemic? Corporate Ownership & Control, 21(3), 69–76. https://doi.org/10.22495/cocv21i3art6
