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 … based on industry membership and firm characteristics. Firms in liberal circuits (the third quartile in ideology) are 33 …

measure of litigation risk, namely, the Directors and Officers liability insurance premium. This measure bypasses significant …We examine the effect of litigation risk on management's decision to issue earnings forecasts. We use a new ex ante … problems associated with the estimation of ex ante litigation risk in prior studies. By using this measure of litigation risk …

Despite a longstanding debate over the pros and cons of imposing legal liability on directors and officers (D&Os), how … D&O liability affects corporate innovation is rarely studied. We study this question by exploiting Nevada's 2001 … corporate law change that dramatically lowered D&O legal liability and helped Nevada become the second most popular state for …

In 2001, Nevada significantly limited the personal legal liability of corporate officers and directors. We use this … risk on agency costs. We find decreased firm value, especially for firms with lower levels of investor protection and with … subsequent to the change. Our findings emphasize that officer and director litigation risk is an important governance mechanism …

This study examines the effect of litigation risk on the readability of corporate financial reports using the 1999 … Silicon Graphics Inc. court ruling as a natural experiment. This ruling unexpectedly reduced the litigation risk of firms … for firms with greater financial constraints, higher ex ante litigation risk, and higher risk of frivolous lawsuits …