may derive from litigation risk. Controlling for measures of litigation risk, more disclosure exhibits a significant and … responds to ex ante perceived risk of litigation …

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 …

find evidence that managers aim to reduce litigation risk by (1) bundling negative information, such as earnings …