Bogging down investors: An unintended consequence of litigation risk

• Main Authors: FU, Siwen, WANG, Ke, ZHANG, Liandong, ZHENG, Liu
• 格式: text
• 語言: English
• 出版: Institutional Knowledge at Singapore Management University 2025
• 主題: litigation risk; readability; Ninth Circuit; plain English; forward-looking statements; Accounting; Finance
• 在線閱讀: https://ink.library.smu.edu.sg/soa_research/2068; https://ink.library.smu.edu.sg/context/soa_research/article/3095/viewcontent/ssrn_3447040.pdf

Securities litigation risk is a well-recognized yet underexplored source of financial reporting complexity or unreadability. This study examines the effect of litigation risk on the readability of corporate financial reports. The 1999 Silicon Graphics Inc. (SGI) court ruling unexpectedly reduced lit...