Bourveau, Thomas; Brochet, François; Michael, Spira, Sven - 2014
governance mechanism by disciplining managers' investment decisions. In the two years following an M&A lawsuit (a lawsuit where … peer firms respond to the increased litigation risk by reducing abnormally high investment expenditures. Finally, the … reactions are stronger among firms with fewer anti-takeover provisions. Overall, our results show that M&A lawsuits can have an …