Page 163 - 臺大管理論叢第32卷第2期

NTU Management Review
Vol. 32 No. 2 Aug. 2022, 155-212
DOI:10.6226/NTUMR.202208_32(2).0005

Directors’ and Officers’ Liability Insurance and Corporate Social
Responsibility

董監事責任險與企業社會責任

Wan-Yin Cheng, Department of Finance, National Changhua University of Education
鄭惋尹 / 國立彰化師範大學財務金融技術學系
Yuan Chang, Department of Finance, National Changhua University of Education
張元 / 國立彰化師範大學財務金融技術學系
Kun-Hsin Chen, Department of Finance, National Changhua University of Education
陳坤信 / 國立彰化師範大學財務金融技術學系
Received 2021/7, Final revision received 2022/4

Abstract
Directors’ and Officers’ Liability Insurance (DOLI) reduces the risk of litigation for
directors and other senior management, and has the merit of increasing willingness to
bearing risks, improving retention of talented personnel, and strengthening corporate
governance due to external monitoring by the insurers. A corporate that fulfill social
responsibilities can strengthen its relationships with stakeholders, enhance corporate
reputation, and ensure the long-term sustainability. Prior studies have proved that
Corporate Social Responsibility (CSR) can be viewed as a type of insurance in terms of
corporate risk mitigation. Both DOLI and CSR can be regarded as firm’s risk management
strategy, making DOLI and CSR a positive relationship. However, some other studies
point out that management under the protection of DOLI may behave opportunistically
and thus put the interest of stakeholders at risk. The relationship between DOLI and
CSR turns to negative. In this research, to examine the above two seemingly conflicting
viewpoints, we select samples from 1,532 non-financial firms listed on the Taiwan Stock
Exchange (TWSE) and Taipei Exchange Market (TPEx) and analyze their data from 2008
to 2018. Our findings indicate that there is a significant and positive association between
the DOLI coverage and CSR performance, proving that firms with greater DOLI coverage
to protect litigation risk tend to devote greater resource in CSR to pursue sustainability.
【Keywords】Directors’ and Officers’ Liability Insurance, Corporate Social Responsibility

領域主編：姜堯民教授

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