U.S. class action lawsuits targeting foreign firms: The country spillover effect
dc.contributor.author | Huang, X. | |
dc.contributor.author | Rui, Yixuan | |
dc.contributor.author | Shen, J. | |
dc.contributor.author | Tian, G. | |
dc.date.accessioned | 2018-12-13T09:11:46Z | |
dc.date.available | 2018-12-13T09:11:46Z | |
dc.date.created | 2018-12-12T02:46:52Z | |
dc.date.issued | 2017 | |
dc.identifier.citation | Huang, 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.uri | http://hdl.handle.net/20.500.11937/71930 | |
dc.identifier.doi | 10.1016/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.publisher | Elsevier BV * North-Holland | |
dc.title | U.S. class action lawsuits targeting foreign firms: The country spillover effect | |
dc.type | Journal Article | |
dcterms.source.volume | 45 | |
dcterms.source.startPage | 378 | |
dcterms.source.endPage | 400 | |
dcterms.source.issn | 0929-1199 | |
dcterms.source.title | Journal of Corporate Finance | |
curtin.department | School of Economics and Finance | |
curtin.accessStatus | Fulltext not available |
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