Studies from Feng Chia University Yield New Data on Economics and Finance (Effects of directors and officers liability insurance on accounting…

Studies from Feng Chia University Yield New Data on Economics and Finance (Effects of directors and officers liability insurance on accounting restatements)

By a News Reporter-Staff News Editor at Investment Weekly News -- Research findings on Finance - Economics and Finance are discussed in a new report. According to news reporting originating in Taichung, Taiwan, by VerticalNews journalists, research stated, "This study investigates the relationship between directors and officers liability insurance (D & 0 insurance) coverage and the probability of accounting restatements."

Financial support for this research came from Ministry of Science and Technology of Taiwan.

The news reporters obtained a quote from the research from Feng Chia University, "The results show that when managers are covered by relatively higher levels of D & 0 insurance, they are more likely to restate their financial reports. Moreover, the findings indicate that D & 0 insurance coverage is related to core earnings restatements and income overstatements, suggesting that managers' accounting policies are more aggressive when they have fewer legal liability concerns."

According to the news reporters, the research concluded: "Overall, these results provide consistent evidence that reducing managerial legal liability has the effect of encouraging managers to misstate reported earnings."

For more information on this research see: Effects of directors and officers liability insurance on accounting restatements. International Review of Economics & Finance, 2017;49():437-452. International Review of Economics & Finance can be contacted at: Elsevier Science Bv, PO Box 211, 1000 Ae Amsterdam, Netherlands. (Elsevier - www.elsevier.com; International Review of Economics & Finance - www.journals.elsevier.com/international-review-of-economics-and-finance/)

Our news correspondents report that additional information may be obtained by contacting T.C. Weng, Feng Chia Univ, Dept. of Accounting, Taichung 40724, Taiwan. Additional authors for this research include G.Z. Chen and H.Y. Chi.

Keywords for this news article include: Taichung, Taiwan, Asia, Economics and Finance, Finance, Feng Chia University.

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