Research on Environmental Science Described by Researchers at Hubei University of Technology (How does D&O insurance affect corporate environmental investment?): Environment – Environmental Science

2022 SEP 19 (NewsRx) -- By a News Reporter-Staff News Editor at Ecology Daily News -- Investigators publish new report on environmental science. According to news reporting from Wuhan, People’s Republic of China, by NewsRx journalists, research stated, “Directors’ and officers’ liability insurance (D&O insurance), an important tool for diversifying and transferring risks of managers, plays a crucial role in corporate investment decisions, including corporate environmental investment decisions.”

The news correspondents obtained a quote from the research from Hubei University of Technology: “However, the relationship between D&O insurance and corporate environmental investment remains unknown. Using a sample of Chinese listed firms, this study examines whether and how D&O insurance affects corporate environmental investment from 2008 to 2019. We find that D&O insurance is negatively associated with corporate environmental investment. This result is consistent with the results of a series of robustness tests. Further analyses show that D&O insurance impedes corporate environmental investment by driving executives to seek private benefits, especially monetary benefits. Moreover, the negative effect of D&O insurance on corporate environmental investment is more pronounced in low-polluting and highly competitive industries.”

According to the news reporters, the research concluded: “However, this negative relationship is mitigated by political connections. The findings contribute to the literature by providing empirical evidence of the involvement of D&O insurance in influencing corporate environmental investment decisions.”

For more information on this research see: How does D&O insurance affect corporate environmental investment?. Frontiers in Environmental Science, 2022,10. (Frontiers in Environmental Science - http://www.frontiersin.org/environmental_science). The publisher for Frontiers in Environmental Science is Frontiers Media S.A.

A free version of this journal article is available at https://doi.org/10.3389/fenvs.2022.960097.

Our news editors report that more information may be obtained by contacting Jiamin Liu, School of Economics and Management, Hubei University of Technology, Wuhan, People’s Republic of China. Additional authors for this research include Yalin Jiang, Shengdao Gan.

(Our reports deliver fact-based news of research and discoveries from around the world.)