Federal judge ideology, securities class action litigation, and stock price crash risk

被引：1

作者：

Cui, Xiaoyu ^{[1
]}

Han, Jianlei ^{[2
]}

Kim, Jeong Bon ^{[3
]}

Qi, Baolei ^{[1
]}

机构：

[1] Xi An Jiao Tong Univ, Xian, Peoples R China

[2] Macquarie Univ, Sydney, NSW, Australia

[3] Simon Fraser Univ, Vancouver, BC, Canada

来源：

ACCOUNTING AND FINANCE | 2024年 / 64卷 / 04期

基金：

中国国家自然科学基金;

关键词：

federal judge ideology; litigation risk; securities class action lawsuits; stock price crash risk; VOLUNTARY DISCLOSURE EVIDENCE; SHAREHOLDER LITIGATION; ANALYST COVERAGE; INFORMATION; COURTS; SUBJECT; OPACITY; IMPACT; MARKET;

D O I：

10.1111/acfi.13299

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

This study investigates whether and how federal judge ideology affects firm-specific stock price crash risk. Using a comprehensive sample of US firms, we find a decline in the likelihood of future stock price crashes for firms headquartered in more liberal circuits. In identifying potential mechanisms, we show that liberal judge ideology reduces information opacity, risk-taking behaviours and overinvestment, and thus curbs stock price crash risk. Furthermore, the curbing effect is more salient for firms with poor monitoring quality and those in low social capital areas. Overall, this study elucidates how federal judge ideology affects capital markets.

引用

页码：4131 / 4155

页数：25

共 87 条

[1] Does governance travel around the world? Evidence from institutional investors [J].