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Corporate strategy and litigation risk

Author

Listed:
  • Feng, Weilin
  • Meng, Yuqun
  • Tian, Li Grace
  • Tu, Steve
  • Wang, Yuran

Abstract

The article empirically examines the impact of corporate strategy on litigation risk by selecting A-share listed companies in China from 2013 to 2021 as the research sample. It is found empirically that the more aggressive a company's strategy is, the greater the litigation risk it faces. After distinguishing whether the company is the prosecuting party or the prosecuted party in litigation events, the paper finds that the litigation risk of the company increases with the aggressiveness of the strategy listed, whether the company is actively prosecuting or passively involved in litigation.

Suggested Citation

  • Feng, Weilin & Meng, Yuqun & Tian, Li Grace & Tu, Steve & Wang, Yuran, 2023. "Corporate strategy and litigation risk," Finance Research Letters, Elsevier, vol. 58(PB).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pb:s1544612323007225
    DOI: 10.1016/j.frl.2023.104350
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    References listed on IDEAS

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    Cited by:

    1. Qu, Shawn, 2024. "Litigation risk and corporate philanthropy: A managerial perspective analysis," Finance Research Letters, Elsevier, vol. 62(PA).

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