Research on Directors’ and Officers’ Liability Insurance and Enterprise Green Innovation

Abstract

In the light of the fact that the current green wave is in vogue and the world is entering a “green” competition era, the green transformation of enterprises is to be found in urgent need. Taking China, A-share listed companies from 2011 to 2020 as the research sample, this paper empirically finds that Directors’ and Officers’ Liability Insurance (D&O Insurance) has a promoting effect on enterprise green innovation, and the longer the introduction time, the more obvious the effect is, which is still valid after alleviating endogenous problems and carrying out a robustness test. Through further research, this paper additionally discovers that D&O Insurance has a significant and relatively stable promoting effect on the invention-type green innovation and utility model green innovation; the promotion effect is more obvious in large-scale enterprises; it is the risk tolerance level that contributes to strengthening the effect. The research results play a role as a catalyst for the circulation of D&O Insurance, provide relevant suggestions for enterprises, regulators and the government to promote green innovation, and help China achieve a crucial position in the "green" competition era.