Far-sighted through mitigating risk: Directors and officers liability insurance and corporate ESG performance
基于2011-2021年中国A股上市公司数据，研究发现董事与高管责任保险能提升企业ESG表现，通过缓解短视行为和促进治理举措，且效果因所有权结构和市场化程度而异。
Based on data from China A-share listed companies over the period 2011 to 2021, this paper explores the role of Directors & Officers Liability Insurance (henceforth referred to as D&O insurance) in enhancing the corporate ESG performance. Findings suggest that the procurement of D&O insurance effectively enhances corporate ESG performance, thereby improving societal appraisal of the corporation. Moreover, through employing mediating effect analysis, we find that D&O insurance not only mitigates corporate short-termism but also stimulates governance initiatives, and consequently elevates corporate ESG performance. Additionally, the positive impact of D&O insurance on a company's ESG performance demonstrates significant heterogeneity across different corporate ownership structures and levels of regional marketization. This paper presents compelling evidence supporting the promotion of D&O insurance alongside the progress of ESG frameworks in China. This dual approach significantly contributes to fostering sustainable development within the real economy. • D&O insurance enhances corporate ESG performance. • Procuring D&O insurance enhances societal appraisal of corporations. • Insurance mitigates corporate short-termism and stimulates governance initiatives. • Positive impact varies across ownership structures and regional marketization levels. • D&O insurance supports ESG frameworks, fostering sustainable development in China.