Misdeeds Matter: Long Term Stock Price Performance after Filing Class-Action Lawsuits
- Published in Financial Analysts Journal
- Sustainable & Impact Investing, Corporate Governance & Sustainability
Consistent with theory, this study of shareholder litigation found a broad transformation in company characteristics and risk exposures and generally negative short- and long-term performance effects that differed substantially between two types of allegations. The findings have important implications for both regulator and institutional investor monitoring and decisionmaking strategies.