Author(s)

Zhongmin Zhang ¹, Weiwei Zheng ¹, Zhuotao Li ¹

Affiliation(s)

¹ School of Accounting, Guizhou University of Finance and Economics, Guiyang, 550025, China

Corresponding Author

Zhuotao Li

ABSTRACT

This article takes the fault-tolerance mechanism of new quality productivity as the entry point, selects Shanghai and Shenzhen A-share listed companies from 2011 to 2022 as samples, and examines the impact of directors' and senior executives' liability insurance (D&O Insurance) on new quality productivity. Empirical findings show that the subscription of D&O Insurance empowers new quality productivity by increasing innovation output and improving the efficiency of resource allocation, and the conclusion still holds after the robustness test. This research not only provides theoretical support for the fault-tolerance effect of D&O Insurance, but also offers practical references for enterprises to cultivate and enhance new quality productivity.

KEYWORDS

Director and Executive Liability Insurance; New Quality Productivity; Fault-Tolerant Mechanism

CITE THIS PAPER

Zhongmin Zhang, Weiwei Zheng, Zhuotao Li, Director and Executive Liability Insurance and New Quality Productivity: "Empowering" or "Negative". Accounting and Corporate Management (2025) Vol. 7: 105-111. DOI: http://dx.doi.org/10.23977/acccm.2025.070315.

REFERENCES

[1] Su Xin, Liu Haolong, Yang Zhiheng. The Background, Theoretical Logic and Practical Approach of Accelerating the Development of New Quality Productive Forces [J]. Marxism and Reality, 2024(02):112-121+204.
[2] Li Qingxue, Song Mengmeng, Liu Lina, et al. Research on the Configuration Path for Manufacturing Enterprises to Form New Quality Productivity [J]. Science Research Management, 2024, 45(09):104-113.
[3] Song Jia, Zhang Jinchang, Pan Yi. Research on the Impact of ESG Development on New Quality Productivity of Enterprises: Empirical Evidence from Chinese A-share Listed Companies [J] Contemporary Economic Management, 2024, 46(06):1-11.
[4] Pu Qingping Focus on Accelerating the Formation of New Quality Productive Forces [J]. People's Forum, 2023(21):34-37.
[5] Wang Yu, Liu Guoqing, Song Bingjie, et al. Does director and executive liability insurance increase the "temptation of financial management"? [J]. China Accounting Review, 2022, 20(04):559-598.
[6] Yuan R, Sun J, Cao F. Directors' and officers' liability insurance and stock price crash risk[J]. Journal of Corporate Finance, 2016, 37:173-192.
[7] Core J E. The directors' and officers' insurance premium: An outside assessment of the quality of corporate governance [J]. Journal of Law, Economics, and Organization, 2000, 16(2):449-477.
[8] Wang J, Zhang J, Huang H, et al. Directors’ and officers’ liability insurance and firm innovation[J]. Economic Modelling, 2020, 89:414-426.
[9] Zhou Donghua, Luo Shengzhe, Zhao Yujie. Director and Executive Liability Insurance and Enterprise Innovation [J]. Science Research Management, 2022, 43(04):201-208.
[10] Chen Z, Li OZ, Zou H. Directors׳ and officers׳ liability insurance and the cost of equity[J]. Journal of Accounting and Economics, 2016, 61(1):100-120.
[11] Feng Laiqiang, Kong Xiangting, Cao Huijuan. Director and Executive Liability Insurance and Equity Capital Cost: Empirical Research Evidence from Information Quality Channels [J] Accounting Research, 2017(11):65-71+97.
[12] Lin C Officer MS, Wang R, Zou H. Directors' and officers' liability insurance and loan spreads[J]. Journal of Financial Economics, 2013, 110(1):37-60.
[13] Lin C, Hsu S, Chou P L, et al. The effects of directors’ and officers’ liability insurance on key auditing matters[J]. Emerging Markets Finance and Trade, 2020, 56(5):977-1002.
[14] Xing Fei, Zhou Taiyun. Director and Executive Liability Insurance and Corporate Strategy [J]. Insurance Research, 2020(11):32-46.
[15] Hu Guoliu, Zhao Yang, Hu Jun. D&O Insurance, Risk Tolerance and Enterprise Independent Innovation [J]. Management World, 2019, 35(08):121-135.
[16] Yuan Rongli, Wen Wen, Xie Zhihua. Directors' Executive Liability Insurance and Restatement of Financial Statements [J]. Accounting Research, 2018(05):21-27. 
[17] Xiao Youzhi, Zhang Xiaolan, Liu Xin. New Quality Productivity and Internal Salary Gap of Enterprises: From the Perspective of Shared Development [J]. Economic Review, 2024, (03):75-91.
[18] He Yubing, Zhang Si. Research on the Impact of Technological Innovation Sustainability on Enterprise Performance [J]. Science Research Management, 2017, 38(09):1-11.
[19] Jiang Ting, Sun Kunpeng, Nie Huihua. City Level, total factor Productivity and resource misallocation [J]. Management World, 2018, 34(03):38-50+77+183.

Sponsors, Associates, and Links

---

• Information Systems and Economics
  
  
• Accounting, Auditing and Finance
  
  
• Industrial Engineering and Innovation Management
  
  
• Tourism Management and Technology Economy
  
  
• Journal of Computational and Financial Econometrics
  
  
• Financial Engineering and Risk Management
  
  
• Social Security and Administration Management
  
  
• Population, Resources & Environmental Economics
  
  
• Statistics & Quantitative Economics
  
  
• Agricultural & Forestry Economics and Management
  
  
• Social Medicine and Health Management
  
  
• Land Resource Management
  
  
• Information, Library and Archival Science
  
  
• Journal of Human Resource Development
  
  
• Manufacturing and Service Operations Management
  
  
• Operational Research and Cybernetics