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Cultural diversity, asset structure, and corporate litigation risk

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  • Xia, Linglan
  • Song, Jiao

Abstract

This study reveals through empirical investigation that cultural diversity heightens the corporate litigation risk, and irrational asset structure elevates this risk. Board independence plays a moderating role in the relationship between asset structure and corporate litigation risk, and the influence of cultural diversity on litigation risk is less pronounced in state-owned enterprises (SOEs) compared with non-SOEs.

Suggested Citation

  • Xia, Linglan & Song, Jiao, 2024. "Cultural diversity, asset structure, and corporate litigation risk," Finance Research Letters, Elsevier, vol. 69(PB).
    • Handle: RePEc:eee:finlet:v:69:y:2024:i:pb:s1544612324012017
    DOI: 10.1016/j.frl.2024.106172
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    More about this item

    Keywords

    Cultural diversity; Asset structure; Litigation risk;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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