Does managerial entrenchment motivate the insurance decision?

► We examine whether managerial entrenchment motivates the insurance decision. ► Managerial entrenchment is valued by a principal component analysis-derived index. ► Firms with a higher index score are more likely to insure their assets. ► The score for the index does not affect the amount of insurance coverage purchased. ► Agency costs do not appear to impact on the insurance decisions.