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Article: Directors' and officers' liability insurance and acquisition outcomes
Title | Directors' and officers' liability insurance and acquisition outcomes |
---|---|
Authors | |
Keywords | Directors' And Officers' Liability Insurance Mergers And Acquisitions |
Issue Date | 2011 |
Publisher | Elsevier BV. The Journal's web site is located at http://www.elsevier.com/locate/jfec |
Citation | Journal Of Financial Economics, 2011, v. 102 n. 3, p. 507-525 How to Cite? |
Abstract | We examine the effect of directors' and officers' liability insurance (D&O insurance) on the outcomes of merger and acquisition (M&A) decisions. We find that acquirers whose executives have a higher level of D&O insurance coverage experience significantly lower announcement-period abnormal stock returns. Further analyses suggest that acquirers with a higher level of D&O insurance protection tend to pay higher acquisition premiums and their acquisitions appear to exhibit lower synergies. The evidence provides support for the notion that the provision of D&O insurance can induce unintended moral hazard by shielding directors and officers from the discipline of shareholder litigation. © 2011 Elsevier B.V. |
Persistent Identifier | http://hdl.handle.net/10722/188469 |
ISSN | 2023 Impact Factor: 10.4 2023 SCImago Journal Rankings: 13.655 |
SSRN | |
ISI Accession Number ID | |
References |
DC Field | Value | Language |
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dc.contributor.author | Lin, C | en_US |
dc.contributor.author | Officer, MS | en_US |
dc.contributor.author | Zou, H | en_US |
dc.date.accessioned | 2013-09-03T04:07:45Z | - |
dc.date.available | 2013-09-03T04:07:45Z | - |
dc.date.issued | 2011 | en_US |
dc.identifier.citation | Journal Of Financial Economics, 2011, v. 102 n. 3, p. 507-525 | en_US |
dc.identifier.issn | 0304-405X | en_US |
dc.identifier.uri | http://hdl.handle.net/10722/188469 | - |
dc.description.abstract | We examine the effect of directors' and officers' liability insurance (D&O insurance) on the outcomes of merger and acquisition (M&A) decisions. We find that acquirers whose executives have a higher level of D&O insurance coverage experience significantly lower announcement-period abnormal stock returns. Further analyses suggest that acquirers with a higher level of D&O insurance protection tend to pay higher acquisition premiums and their acquisitions appear to exhibit lower synergies. The evidence provides support for the notion that the provision of D&O insurance can induce unintended moral hazard by shielding directors and officers from the discipline of shareholder litigation. © 2011 Elsevier B.V. | en_US |
dc.language | eng | en_US |
dc.publisher | Elsevier BV. The Journal's web site is located at http://www.elsevier.com/locate/jfec | en_US |
dc.relation.ispartof | Journal of Financial Economics | en_US |
dc.rights | This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License. | - |
dc.rights | NOTICE: this is the author’s version of a work that was accepted for publication in Journal of Financial Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in PUBLICATION, [VOL 102, ISSUE 3, (2011)] DOI 10.1016/j.jfineco.2011.08.004 | - |
dc.subject | Directors' And Officers' Liability Insurance | en_US |
dc.subject | Mergers And Acquisitions | en_US |
dc.title | Directors' and officers' liability insurance and acquisition outcomes | en_US |
dc.type | Article | en_US |
dc.identifier.email | Zou, H: hongzou@hku.hk | en_US |
dc.identifier.authority | Zou, H=rp01800 | en_US |
dc.description.nature | postprint | en_US |
dc.identifier.doi | 10.1016/j.jfineco.2011.08.004 | en_US |
dc.identifier.scopus | eid_2-s2.0-82455199081 | en_US |
dc.relation.references | http://www.scopus.com/mlt/select.url?eid=2-s2.0-82455199081&selection=ref&src=s&origin=recordpage | en_US |
dc.identifier.volume | 102 | en_US |
dc.identifier.issue | 3 | en_US |
dc.identifier.spage | 507 | en_US |
dc.identifier.epage | 525 | en_US |
dc.identifier.isi | WOS:000296598500003 | - |
dc.publisher.place | Netherlands | en_US |
dc.identifier.ssrn | 1641645 | - |
dc.identifier.scopusauthorid | Lin, C=25630694300 | en_US |
dc.identifier.scopusauthorid | Officer, MS=6507728699 | en_US |
dc.identifier.scopusauthorid | Zou, H=48663306300 | en_US |
dc.identifier.issnl | 0304-405X | - |