Legal opportunism, litigation risk, and IPO underpricing

被引：14

作者：

Walker, Thomas ^{[1
]}

Turtle, Harry J. ^{[2
]}

Pukthuanthong, Kuntara ^{[3
]}

Thiengtham, Dolruedee ^{[4
]}

机构：

[1] Concordia Univ, John Molson Sch Business, Montreal, PQ H3G 1M8, Canada

[2] W Virginia Univ, Coll Business & Econ, Morgantown, WV 26506 USA

[3] Univ Missouri, Trulaske Coll Business, Columbia, MO 65211 USA

[4] Univ Exeter, Sch Business & Econ, Exeter EX4 4PU, Devon, England

来源：

JOURNAL OF BUSINESS RESEARCH | 2015年 / 68卷 / 02期

关键词：

Initial public offerings; Securities regulation; Securities litigation; Legal opportunism; INITIAL PUBLIC OFFERINGS; INVESTOR SENTIMENT; PERFORMANCE; INFORMATION; MARKET;

D O I：

10.1016/j.jbusres.2014.06.025

中图分类号：

F [经济];

学科分类号：

02 ;

摘要：

We consider the importance of legal opportunism as an explanation for observed litigation following a large sample of initial public offerings (IPOs). We characterize legal opportunism as litigation based on the potential to recover losses after negative stock price developments rather than the legal merits. We find the most important predictors of post-IPO litigation activity (both likelihood and settlement amounts) to be ex post legal stakes (i.e., monetary damages plaintiffs could claim), and the remaining wealth available in the firm. Our results suggest a disturbing role for legal activity and starkly contrast existing models of IPO underpricing that focus on ex ante risk factors. (C) 2014 Elsevier Inc. All rights reserved.

引用

页码：326 / 340

页数：15

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