Shareholder litigation rights and stock price crash risk

被引：36

作者：

Obaydin, Ivan ^{[1
]}

Zurbruegg, Ralf ^{[1
]}

Hossain, Md Noman ^{[2
]}

Adhikari, Binay Kumar ^{[3
]}

Elnahas, Ahmed ^{[2
]}

机构：

[1] Univ Adelaide, Adelaide Business Sch, Adelaide, SA, Australia

[2] Univ Texas Rio Grande Valley, Robert C Vackar Coll Business & Entrepreneurship, Edinburg, TX USA

[3] Univ Texas San Antonio, Coll Business, San Antonio, TX USA

来源：

JOURNAL OF CORPORATE FINANCE | 2021年 / 66卷

关键词：

Shareholder litigation risk; Derivative lawsuits; Universal demand; Stock price crash risk; Securities class action lawsuits; Judge ideology; VOLUNTARY DISCLOSURE EVIDENCE; COST;

D O I：

10.1016/j.jcorpfin.2020.101826

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We study the impact of shareholder-initiated litigation risk on a firm?s stock price crash risk. Our empirical analysis takes advantage of the staggered adoption of universal demand laws, which led to an exogenous decline in derivative litigation risk. We find that a decline in the threat of derivative litigation reduces crash risk and that information hoarding associated with earnings management is a channel through which litigation risk affects crash risk. The relationship is also moderated by how exposed firms are to the other primary form of shareholder litigation, namely securities class-action lawsuits.

引用

页数：19

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