Abstract: In recent years, there have been frequent incidents that directors and senior executives have to bear huge compensation due to operation of their company. Therefore, purchasing directors' and officers' liability insurance has become the choice of more and more Chinese enterprises. By collecting the data of A-share listed companies from 2016 to 2020 in China, this paper empirically explores the impact of directors' and officers' liability insurance on corporate social responsibility and deeply analyzes its mechanism. The results show that directors' and officers' liability insurance is positively correlated with CSR performance, and internal control plays a partial intermediary role between directors' and officers' liability insurance and CSR. Further analysis shows that economic policy uncertainty negatively moderates the relationship between directors' and officers' liability insurance and CSR. Compared with non-state-owned enterprises, the relationship between directors' and officers' liability insurance and CSR is more significant in state-owned enterprises. The above conclusions provide some empirical evidence for improving our directors' and officers' liability insurance system and promoting the fulfillment of CSR.

Key words: directors' and officers' liability insurance, corporate social responsibility, internal control, corporate governance