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dc.contributor.authorHuang, X.
dc.contributor.authorRui, Yixuan
dc.contributor.authorShen, J.
dc.contributor.authorTian, G.
dc.date.accessioned2018-12-13T09:11:46Z
dc.date.available2018-12-13T09:11:46Z
dc.date.created2018-12-12T02:46:52Z
dc.date.issued2017
dc.identifier.citationHuang, X. and Rui, Y. and Shen, J. and Tian, G. 2017. U.S. class action lawsuits targeting foreign firms: The country spillover effect. Journal of Corporate Finance. 45: pp. 378-400.
dc.identifier.urihttp://hdl.handle.net/20.500.11937/71930
dc.identifier.doi10.1016/j.jcorpfin.2017.05.011
dc.description.abstract

© 2017 Elsevier B.V. We find negative price reactions among non-sued U.S.-listed foreign firms to filings of U.S. shareholder lawsuits targeting firms from their home country. This country spillover effect is stronger for lawsuits, especially accounting-related ones, targeting firms from more poorly-governed countries. We also document a stronger country spillover effect for a recent wave of U.S. lawsuits targeting Chinese issuers than for other standalone litigation. Finally, a foreign firm's price reaction to lawsuits targeting its country peers predicts its chance of being sued in the future. Our findings are consistent with investors updating a foreign firm's litigation risk upon lawsuits targeting its country peers.

dc.publisherElsevier BV * North-Holland
dc.titleU.S. class action lawsuits targeting foreign firms: The country spillover effect
dc.typeJournal Article
dcterms.source.volume45
dcterms.source.startPage378
dcterms.source.endPage400
dcterms.source.issn0929-1199
dcterms.source.titleJournal of Corporate Finance
curtin.departmentSchool of Economics and Finance
curtin.accessStatusFulltext not available


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