We examine whether directors' and officers' (D&O) liability insurance affects a firm's cost of equity. We find a …

This study investigates how directors' and officers' liability insurance (hereafter D&O insurance) affects corporate …&O liability insurance is positively associated with corporate diversification, particularly unrelated diversification. In addition …, we find that when diversification does occur, excessive D&O liability insurance worsens the shareholder value destroyed a …

prompted the development of Directors’ and Officers’ liability insurance (D&O insurance). This study finds that purchase of D …