According to the existing literature, institutional investors have a significant impact on the litigation risk of … publicly traded companies. This should be particularly true after the Private Securities Litigation Reform Act (PSLRA) of 1995 … horizon and ownership structure and find that both factors significantly affect a firm's litigation risk. Short …

and deters parties from settling disputes out of court. In contrast, the law is certain ex post: litigation fosters the … of a legal system (kept under control by litigation) and its litigation rate (sustained by uncertainty). We describe such … equilibrium rates in a model of tort litigation, study how they are affected by different policies, and compare the costs and …

This paper documents that changes in litigation risk affect corporate voluntary disclosure practices. We make causal … inferences by exploiting three legal events that generate exogenous variations in firms' litigation risk. Using a matching … forecasts relative to the control firms when they expect litigation risk to be lower (higher) following the legal event. The …

Drawing on the political theory of judicial decision making, our paper proposes a new and parsimonious ex ante … litigation risk measure: federal judge ideology. We find that judge ideology complements existing measures of litigation risk … judge ideology on litigation risk is greater for firms with more sophisticated shareholders and with higher expected …