Boyer, M. Martin; Stern, Léa H. - In: Journal of Corporate Finance 18 (2012) 2, pp. 349-372
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...