Directors’ and officers’ liability insurance, debt contracting, and earnings conservatism.
Journal
NTU Management Review
Date Issued
2013-05
Author(s)
W. Lin
Abstract
This study evaluates whether earnings conservatism increases when firms with high debt contracting demands purchase directors' and officers' insurance (DO Watts, 2003) that debtholders demand greater earnings conservatism as a means of addressing agency problems. This study also provides evidence that debtholders appear to be the primary driver of the demand for earnings conservatism.
SDGs
Type
journal article