the greatest litigation risk experience the greatest increase in innovation after this decision. We conclude that a …In this study, we examine the impact of class action litigation shocks on corporate innovation. Our experimental design … is based on an unanticipated court ruling that reduces the risk of shareholder class action lawsuits for firms located …

D&O liability affects corporate innovation is rarely studied. We study this question by exploiting Nevada's 2001 … out-of-state incorporations. We find that firms incorporated in Nevada exhibit an increase in innovation outputs relative … to matched control firms after the law change, particularly for firms facing higher litigation risk or operating in more …

techniques to address endogeneity. We find that both litigation risk and financial constraints significantly hinder innovation … risk and fosters innovation. Additionally, our findings emphasize the pronounced decline in innovation among highly …Amid ongoing discussion over the merits and demerits of litigation, this study addresses the impact of litigation risk …

impairment among (1) private client firms, for which the risk of auditor reputation loss is lower than for publicly traded firms … less likely to issue modified opinions. Despite the low litigation risk and the reduced reputation risk, our empirical …

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

We examine the relation between litigation risk and IPO underpricing and test two aspects of the litigation-risk … hypothesis: (1) firms with higher litigation risk underprice their IPOs by a greater amount as a form of insurance (insurance … litigation-risk hypothesis …

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 … litigation costs. Furthermore, judicial appointments affect litigation risk and the value of firms in the circuit, highlighting …

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 …

contrast existing models of IPO underpricing that focus on ex ante risk factors …