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NTU Management Review Vol. 34 No. 1 Apr. 2024

and abnormal insurance coverage or use the data on D&O insurance premiums to provide
more empirical evidence.

5. Originality and Contribution

This paper has three major contributions. First, this paper is the first to differentiate
between normal and abnormal insurance coverage amounts by using Taiwanese data to

investigate the relationship between D&O normal/abnormal coverage amounts and audit
fees. Second, this paper is the first to examine the interaction effect between the D&O
insurance coverage and the institutional investor in the insurance business relationship on
audit fees, from the perspective of information advantages and conflicts of interest. Third,
this paper contributes to the literature by using more recent sample data, from 2013 to

2018, to analyze the interrelationships among D&O normal/abnormal coverage amounts,
institutional investor characteristics, and audit fees and conduct multiple sensitivity tests.

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