Reports Summarize Economics Study Results from Wuhan University (Economic Policy Uncertainty and Directors and Officers Liability Insurance: a Perspective On Capital Market Pressures): Economics

NewsRx Policy and Law Daily

2023 JUN 13 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Policy and Law Daily -- Data detailed on Economics have been presented. According to news reporting originating from Wuhan, People’s Republic of China, by NewsRx correspondents, research stated, “This study investigates the effects of economic policy uncertainty (EPU) on corporate purchases of directors and officers liability insurance from the perspective of capital market pressures. Using data on A-share Chinese listed firms from 2010 to 2021, our theoretical analysis and empirical tests reveal that higher levels of EPU increase purchases.”

Financial support for this research came from National Natural Science Foundation of China (NSFC).

Our news editors obtained a quote from the research from Wuhan University, “The theoretical analysis and mediating tests reveal that capital market pressures play a mediating role in the relationship between EPU and purchases. This study also finds that the indirect ways in which EPU increases purchases consider the need for firms to mitigate litigation risks and take advantage of insurance governance. The heterogeneous analysis and tests reveal that EPU increases purchases more significantly in firms that have higher managerial agency costs, have lower corporate transparency, and are in industries with higher competition.”

According to the news editors, the research concluded: “The findings are significant for improving the risk management system in China’s capital markets.”

This research has been peer-reviewed.

For more information on this research see: Economic Policy Uncertainty and Directors and Officers Liability Insurance: a Perspective On Capital Market Pressures. The Geneva Papers on Risk and Insurance Issues and Practice, 2023. The Geneva Papers on Risk and Insurance Issues and Practice can be contacted at: Palgrave Macmillan Ltd, Brunel Rd Bldg, Houndmills, Basingstoke RG21 6XS, Hants, England.

The news editors report that additional information may be obtained by contacting Can Lin, Wuhan University, School of Economics and Management, Wuhan, People’s Republic of China.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1057/s41288-023-00300-1. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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