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

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 …

litigation risk on corporate disclosure. We find that disclosure significantly increases after UD laws make it more difficult to … by firms facing relatively higher ex ante derivative litigation risk and higher operating uncertainty, as well as firms …

litigation risk on corporate disclosure. We find that disclosure significantly increases after UD laws make it more difficult to … by firms facing relatively higher ex ante derivative litigation risk and higher operating uncertainty, as well as firms …

optimistic language increases litigation risk. Using both general-purpose and context-specific text dictionaries to quantify tone … consistent with optimistic language increasing litigation risk. In addition, we find incrementally greater litigation risk when … risk only when contemporaneous disclosures are unusually optimistic …

This study examines how universal demand (UD) laws affect shareholder derivative litigation risk and financial … reporting decisions. We provide evidence that the incremental risk from derivative litigation beyond parallel securities class … disclosure behavior. Ultimately, the use of UD laws as shocks to accounting- or disclosure-related litigation risk appears …