The Spillover of Shareholder Litigation Risk and Corporate Voluntary Disclosure

IF 1.3 Q3 BUSINESS, FINANCE
Senlin Miao, Mengchao Ai, John (Jianqiu) Bai, Ting Chen, Amy X. Sun
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引用次数: 0

Abstract

In this study, we instigate whether firms proactively change their voluntary disclosure in anticipation of the spillover of their peer firms’ litigation risk. We find that focal firms facing greater ex ante spillover litigation risk reduce disclosure activities by lowering both the likelihood of issuance and the frequency of management earnings forecasts. We then show that the effect is robust and unlikely driven by some omitted correlated variables using an alternative ex ante litigation risk measure that is not related to firm characteristics. We further demonstrate that the effect is likely causal using a difference-in-differences design where an unanticipated court ruling significantly reduces certain firms’ exposure to peers’ litigation risk spillover. The results from cross-sectional analyses are also consistent with ex ante litigation risk driving the negative relation.
股东诉讼风险外溢与公司自愿披露
在本研究中,我们研究了公司是否在预期其同行公司的诉讼风险溢出时主动改变其自愿披露。我们发现,面临更大事前外溢诉讼风险的焦点公司通过降低发布管理层盈余预测的可能性和频率来减少披露活动。然后,我们使用与公司特征无关的替代事前诉讼风险度量来证明这种效应是稳健的,并且不太可能由一些省略的相关变量驱动。我们进一步证明,这种影响可能是因果关系,使用差异中的差异设计,其中意外的法院裁决显着降低了某些公司对同行诉讼风险溢出的暴露。横断面分析的结果也与事前诉讼风险驱动负相关关系一致。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
4.20
自引率
7.10%
发文量
27
期刊介绍: The Journal of Accounting, Auditing, and Finance (JAAF) is committed to publishing high quality studies in accounting and related fields. Papers on accounting issues relating to developing in other fields such as finance, economics, and operations are also welcome. Empirical, analytical and experimental works of all varieties and paradigms, normative as well as positive, will be considered, provided they significantly contribute to the advancement of our knowledge in accounting. Manuscripts submitted should contain original unpublished research and should not be under consideration for possible publication elsewhere.
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