IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v69y2024ipas154461232401167x.html
   My bibliography  Save this article

Directors’ and officers’ liability insurance and carbon emissions

Author

Listed:
  • Wang, Qianyi
  • Lou, Xinyi
  • Wang, Zhan

Abstract

As climate-related issues become more serious, companies face mounting pressure to promote environmental governance. In this study, we examine companies’ carbon emissions behavior from the perspective of corporate risk-taking. Analyzing China's company-level carbon emissions data from 2011 to 2021, we find that firms with directors’ and officers’ liability insurance (D&O insurance) have higher carbon emissions intensity. We then find that the D&O insurance–carbon emissions relationship exists among firms not involved in litigation in the previous year. Furthermore, this relationship becomes more pronounced when companies are under financial distress or have a higher number of analysts following them. Our results support the argument that companies with high risk-taking capacity exhibit greater polluting behavior.

Suggested Citation

  • Wang, Qianyi & Lou, Xinyi & Wang, Zhan, 2024. "Directors’ and officers’ liability insurance and carbon emissions," Finance Research Letters, Elsevier, vol. 69(PA).
    • Handle: RePEc:eee:finlet:v:69:y:2024:i:pa:s154461232401167x
    DOI: 10.1016/j.frl.2024.106138
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S154461232401167X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.106138?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    D&O insurance; Carbon emissions; Risk-taking;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:69:y:2024:i:pa:s154461232401167x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.