Shareholder litigation risk and the information environment: Revisiting evidence from two natural experiments
Author
Abstract
Suggested Citation
DOI: 10.1016/j.jcorpfin.2023.102444
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
References listed on IDEAS
- Le, Nhan & Nguyen, Duc Duy & Sila, Vathunyoo, 2021. "Does shareholder litigation affect the corporate information environment?," Journal of Financial Markets, Elsevier, vol. 56(C).
- Jarrad Harford & Feng Jiang & Rong Wang & Fei Xie, 2019. "Analyst Career Concerns, Effort Allocation, and Firms’ Information Environment," The Review of Financial Studies, Society for Financial Studies, vol. 32(6), pages 2179-2224.
- Mitchell A. Petersen, 2009.
"Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches,"
The Review of Financial Studies, Society for Financial Studies, vol. 22(1), pages 435-480, January.
- Mitchell A. Petersen, 2005. "Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches," NBER Working Papers 11280, National Bureau of Economic Research, Inc.
- Armstrong, Christopher S. & Balakrishnan, Karthik & Cohen, Daniel, 2012. "Corporate governance and the information environment: Evidence from state antitakeover laws," Journal of Accounting and Economics, Elsevier, vol. 53(1), pages 185-204.
- Bloomfield, Robert, 2008. "Discussion of "Annual report readability, current earnings, and earnings persistence"," Journal of Accounting and Economics, Elsevier, vol. 45(2-3), pages 248-252, August.
- Beyer, Anne & Cohen, Daniel A. & Lys, Thomas Z. & Walther, Beverly R., 2010. "The financial reporting environment: Review of the recent literature," Journal of Accounting and Economics, Elsevier, vol. 50(2-3), pages 296-343, December.
- Dechow, Patricia & Ge, Weili & Schrand, Catherine, 2010. "Understanding earnings quality: A review of the proxies, their determinants and their consequences," Journal of Accounting and Economics, Elsevier, vol. 50(2-3), pages 344-401, December.
- Justin Hopkins, 2018. "Do Securities Class Actions Deter Misreporting?," Contemporary Accounting Research, John Wiley & Sons, vol. 35(4), pages 2030-2057, December.
- Li, Feng, 2008. "Annual report readability, current earnings, and earnings persistence," Journal of Accounting and Economics, Elsevier, vol. 45(2-3), pages 221-247, August.
- Skinner, Douglas J., 1997. "Earnings disclosures and stockholder lawsuits," Journal of Accounting and Economics, Elsevier, vol. 23(3), pages 249-282, November.
- Todd A. Gormley & David A. Matsa, 2011. "Growing Out of Trouble? Corporate Responses to Liability Risk," The Review of Financial Studies, Society for Financial Studies, vol. 24(8), pages 2781-2821.
- Field, Laura & Lowry, Michelle & Shu, Susan, 2005. "Does disclosure deter or trigger litigation?," Journal of Accounting and Economics, Elsevier, vol. 39(3), pages 487-507, September.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Ji, Tuo & Cai, Dong, 2024. "Major shareholder equity pledge and litigation risk," Finance Research Letters, Elsevier, vol. 65(C).
- Li, Yang & Lin, Xiaorong & Lei, Xingfan & Ge, Ji & Guo, Jingyi & Xia, Wenxin, 2024. "Corporate financialization and litigation risk," Finance Research Letters, Elsevier, vol. 67(PA).
- Zhang, Huilin & Boubaker, Sabri & Ni, Xiaoran, 2024.
"Litigating payouts or not? Evidence from universal demand laws,"
International Review of Economics & Finance, Elsevier, vol. 90(C), pages 136-153.
- Huilin Zhang & Sabri Boubaker & Xiaroan Ni, 2024. "Litigating Payouts or Not? Evidence from Universal Demand Laws," Post-Print hal-04432414, HAL.
- Li, Zhi & Liu, Yue & Huang, Wenxuan, 2024. "Capital structure and corporate litigation," International Review of Economics & Finance, Elsevier, vol. 95(C).
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Thomas Bourveau & Yun Lou & Rencheng Wang, 2018. "Shareholder Litigation and Corporate Disclosure: Evidence from Derivative Lawsuits," Journal of Accounting Research, Wiley Blackwell, vol. 56(3), pages 797-842, June.
- Hans B. Christensen & Luzi Hail & Christian Leuz, 2021.
"Mandatory CSR and sustainability reporting: economic analysis and literature review,"
Review of Accounting Studies, Springer, vol. 26(3), pages 1176-1248, September.
- Hans B. Christensen & Luzi Hail & Christian Leuz, 2019. "Mandatory CSR and Sustainability Reporting: Economic Analysis and Literature Review," NBER Working Papers 26169, National Bureau of Economic Research, Inc.
- Blankespoor, Elizabeth & deHaan, Ed & Marinovic, Iván, 2020. "Disclosure processing costs, investors’ information choice, and equity market outcomes: A review," Journal of Accounting and Economics, Elsevier, vol. 70(2).
- Christian Leuz & Peter D. Wysocki, 2016. "The Economics of Disclosure and Financial Reporting Regulation: Evidence and Suggestions for Future Research," Journal of Accounting Research, Wiley Blackwell, vol. 54(2), pages 525-622, May.
- Imhof, Michael J & Seavey, Scott E., 2018. "How investors value cash and cash flows when managers commit to providing earnings forecasts," Advances in accounting, Elsevier, vol. 41(C), pages 74-87.
- Chung, Yu-Hsuan & Pan, Lee-Hsien & Huang, Shaio Yan & Chen, K.C., 2015. "Do firms change earnings management behavior after receiving financial forecast warnings?," Global Finance Journal, Elsevier, vol. 27(C), pages 1-17.
- Hutton, Amy & Shu, Susan & Zheng, Xin, 2022. "Regulatory transparency and the alignment of private and public enforcement: Evidence from the public disclosure of SEC comment letters," Journal of Financial Economics, Elsevier, vol. 145(1), pages 297-321.
- Bliss, Barbara A. & Partnoy, Frank & Furchtgott, Michael, 2018. "Information bundling and securities litigation," Journal of Accounting and Economics, Elsevier, vol. 65(1), pages 61-84.
- Yiwei Li & Wei Song & Tingyu Sun & Qingjing Zhang, 2023. "The impact of shareholder litigation risk on income smoothing," Review of Quantitative Finance and Accounting, Springer, vol. 61(4), pages 1379-1413, November.
- Athanasakou, Vasiliki E. & Strong, Norman C & Walker, Martin, 2014. "The relative concentration of bad versus good news flows," LSE Research Online Documents on Economics 60139, London School of Economics and Political Science, LSE Library.
- Hurwitz, Helen, 2017. "The understatement of large negative earnings news in managers’ annual guidance," Journal of Contemporary Accounting and Economics, Elsevier, vol. 13(2), pages 119-133.
- Humphery-Jenner, Mark & Liu, Yun & Nanda, Vikram & Silveri, Sabatino & Sun, Minxing, 2024. "Of fogs and bogs: Does litigation risk make financial reports less readable?," Journal of Banking & Finance, Elsevier, vol. 163(C).
- Berger, Philip G., 2011. "Challenges and opportunities in disclosure research—A discussion of ‘the financial reporting environment: Review of the recent literature’," Journal of Accounting and Economics, Elsevier, vol. 51(1), pages 204-218.
- Orhun, Eda, 2019. "Voluntary disclosure and market competition: Theory and evidence from the U.S. services sector," Research in International Business and Finance, Elsevier, vol. 47(C), pages 354-370.
- Malm, James & Soyeh, Kenneth W. & Kanuri, Srinidhi, 2023. "Litigation risk and corporate performance," Journal of Behavioral and Experimental Finance, Elsevier, vol. 37(C).
- Noh, Suzie & So, Eric C. & Weber, Joseph P., 2019. "Voluntary and mandatory disclosures: Do managers view them as substitutes?," Journal of Accounting and Economics, Elsevier, vol. 68(1).
- Minxing Sun & Weike Xu, 2024. "Short selling and readability in financial disclosures: A controlled experiment," The Financial Review, Eastern Finance Association, vol. 59(2), pages 265-292, May.
- Terry Shevlin, 2013. "Some personal observations on the debate on the link between financial reporting quality and the cost of equity capital," Australian Journal of Management, Australian School of Business, vol. 38(3), pages 447-473, December.
- Beattie, Vivien, 2014. "Accounting narratives and the narrative turn in accounting research: Issues, theory, methodology, methods and a research framework," The British Accounting Review, Elsevier, vol. 46(2), pages 111-134.
- Ying Huang & Ningzhong Li & Yong Yu & Xiaolu Zhou, 2020. "The Effect of Managerial Litigation Risk on Earnings Warnings: Evidence from a Natural Experiment," Journal of Accounting Research, Wiley Blackwell, vol. 58(5), pages 1161-1202, December.
More about this item
Keywords
Information environment; Disclosure; Shareholder litigation; Silicon graphics inc. ruling; Universal demand laws;All these keywords.
JEL classification:
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- G30 - Financial Economics - - Corporate Finance and Governance - - - General
- G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
- K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:corfin:v:82:y:2023:i:c:s0929119923000937. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jcorpfin .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.