Researchers from Central University of Finance and Economics Report New Studies and Findings in the Area of Technology (Unexpected Discrimination: Does Directors’ and Officers’ Liability Insurance Exacerbate Credit Mismatch?): Technology

2025 MAY 30 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Current study results on Technology have been published. According to news reporting originating from Beijing, People’s Republic of China, by NewsRx correspondents, research stated, “Credit mismatch constrains firm growth and financial stability, particularly in emerging markets. While directors’ and officers’ liability insurance (D&O insurance) strengthens governance, its credit allocation remains unexplored.”

Funders for this research include Program for Innovation Research in Central University of Finance and Economics, Social Science Fund of Beijing, National Social Science Fund of China, Research topics of Insurance Society of China.

Our news editors obtained a quote from the research from the Central University of Finance and Economics, “We pioneer in showing D&O insurance exacerbates credit mismatch in China by increasing interest costs for firms with above-average initial expenses, driven by credit provider’ risk discrimination instead of managerial opportunism. Heterogeneity analysis indicates that non-state-owned firms, firms with smaller supervisory boards, and firms with lower institutional shareholding experience stronger adverse effects, suggesting that weaker institutional credibility amplifies credit discrimination.”

According to the news editors, the research concluded: “However, digital technology adoption and corporate information disclosure help mediate this effect, reducing credit mismatch.”

This research has been peer-reviewed.

For more information on this research see: Unexpected Discrimination: Does Directors’ and Officers’ Liability Insurance Exacerbate Credit Mismatch? Finance Research Letters, 2025;80. Finance Research Letters can be contacted at: Academic Press Inc Elsevier Science, 525 B St, Ste 1900, San Diego, CA 92101-4495, USA. (Elsevier - www.elsevier.com; Finance Research Letters - http://www.journals.elsevier.com/finance-research-letters/)

The news editors report that additional information may be obtained by contacting Lizhen Wang, Central University of Finance and Economics, School of Insurance, Beijing 102206, People’s Republic of China. Additional authors for this research include Jing Wen and Xin Zhang.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.frl.2025.107431. 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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