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Enterprise litigation risk and enterprise performance

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Listed:
  • He, Hui
  • Shi, Wei

Abstract

With the continuous improvement of China's legal system, corporate litigation risk has become a hot topic of academic research. This paper selects data from 2011 to 2020 to explore the impact of litigation risk on corporate performance. It further investigates the impact of litigation risk on corporate performance through the level of debt financing. It is found that: the higher the corporate litigation risk, the lower the level of corporate performance; the higher the level of internal controlling and analyst following, the lower the effect of litigation risk on corporate performance; the mediating effect shows that litigation risk is transmitted negatively to corporate performance through corporate debt financing ability.

Suggested Citation

  • He, Hui & Shi, Wei, 2023. "Enterprise litigation risk and enterprise performance," Finance Research Letters, Elsevier, vol. 55(PA).
    • Handle: RePEc:eee:finlet:v:55:y:2023:i:pa:s1544612323001563
    DOI: 10.1016/j.frl.2023.103783
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    References listed on IDEAS

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    Cited by:

    1. Lai, Jieji & Hu, Shiyang, 2024. "Bankruptcy judicial system reform and corporate financial litigation risk: A quasi-natural experiment in China," Finance Research Letters, Elsevier, vol. 62(PB).
    2. Guo, Heng, 2023. "Enterprise litigation risk and risk taking," Finance Research Letters, Elsevier, vol. 58(PA).
    3. Ji, Tuo & Cai, Dong, 2024. "Major shareholder equity pledge and litigation risk," Finance Research Letters, Elsevier, vol. 65(C).
    4. Qu, Shawn, 2024. "Litigation risk and corporate philanthropy: A managerial perspective analysis," Finance Research Letters, Elsevier, vol. 62(PA).
    5. Qu, Shawn, 2024. "Costs may be a blessing in disguise: Litigation risk and greenwashing," Finance Research Letters, Elsevier, vol. 62(PA).

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