Of the many fundamental questions left unanswered in finance, one relates to corporate risk management practices. My contention in this paper is that managerial habits and organizational inertia play an important role in the decision to purchase corporate insurance and engage in risk management...

Of the many fundamental questions left unanswered in finance, one relates to corporate risk management practices. It is still relatively unclear what are the reasons that motivate risk neutral corporations to manage their idiosyncratic risk. Our contention in this paper is that corporate...

This paper develops and tests hypotheses regarding the relationship between D&O insurance purchase and firm size, governance characteristics, and business risk, using a unique panel dataset on Canadian firms for years 1996-2005. The rich data permit examination of the determinants of insurance...

This paper develops and tests hypotheses regarding the relationship between D&O insurance purchase and firm size, governance characteristics, and business risk, using a unique panel dataset on Canadian firms for years 1996-2005. The rich data permit examination of the determinants of insurance...

We find that common equity firms pay lower D&O insurance premiums than income trusts, an alternative and riskier ownership form. This result has wide-ranging implications for investors insofar as the information provided by D&O insurers provides investors with an unbiased signal of the firm's...

Corporate directors are liable for the corporation's actions as well as their own. Strangely, and by far, the most likely plaintiffs in a lawsuit against corporate directors are the shareholders who appointed them in the first place. As a result, directors often require protection so that their...

This study investigates how directors' and officers' liability insurance (hereafter D&O insurance) affects corporate diversification and post-diversification performance. Using a sample of 671 Taiwanese listed firms, we find that excessive D&O liability insurance is positively associated with...

Any investor faces important risk when investing in a public firm; risk is even more pronounce when investing in new public firms since relatively little is known at the time of the initial public offering. The information asymmetry problem is partially mitigated through the underpricing of the...

We find that common equity firms pay lower D&O insurance premiums than income trusts, an alternative and riskier ownership form. This result has wide-ranging implications for investors insofar as the information provided by D&O insurers provides investors with an unbiased signal of the firm's...

In countries with weak institutions board governance becomes more important. This study uses a unique dataset from listed Sub-Saharan African companies to examine the relationship between ownership composition and board compensation. It further analyses the association between board compensation...