Shareholder litigation and corporate disclosure: Evidence from derivative lawsuits

• Main Authors: BOURVEAU, Thomas, LOU, Yun, WANG, Rencheng
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2018
• Subjects: Corporate disclosure; Corporate governance; Derivative lawsuits; Shareholder litigation; Universal demand laws; Accounting; Accounting Law; Corporate Finance; Litigation
• Online Access: https://ink.library.smu.edu.sg/soa_research/1713; https://ink.library.smu.edu.sg/context/soa_research/article/2740/viewcontent/Shareholder_Litigation_2017_afv.pdf
• Institution: Singapore Management University

Using the staggered adoption of universal demand (UD) laws in the United States, we study the effect of shareholder litigation risk on corporate disclosure. We find that disclosure significantly increases after UD laws make it more difficult to file derivative lawsuits. Specifically, firms issue mor...