Shareholder litigation rights and the cost of debt: Evidence from derivative lawsuits

被引：79

作者：

Ni, Xiaoran ^{[1
,2
]}

Yin, Sirui ^{[3
]}

机构：

[1] Xiamen Univ, Dept Finance, Sch Econ, Xiamen 361005, Fujian, Peoples R China

[2] Xiamen Univ, Wang Yanan Inst Studies Econ WISE, Xiamen 361005, Fujian, Peoples R China

[3] Univ Arizona, Eller Coll Management, Dept Finance, Tucson, AZ 85721 USA

来源：

JOURNAL OF CORPORATE FINANCE | 2018年 / 48卷

关键词：

Shareholder litigation right; Universal demand law; Cost of debt; Corporate governance; CORPORATE GOVERNANCE; EMPIRICAL-ANALYSIS; PROPENSITY SCORE; AGENCY COSTS; RISK-TAKING; FINANCE; RESPONSES; BOARDS; MARKET; CAUSAL;

D O I：

10.1016/j.jcorpfin.2017.10.008

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

Exploiting the staggered adoption of universal demand (UD) laws as exogenous shocks to filing derivative lawsuits, we find that weakened shareholder litigation rights cause a significant increase in the cost of debt. Deteriorated corporate governance, increased information asymmetry, and heightened managerial risk-taking are the underlying channels. Shareholders respond to weakened litigation rights by providing managers with less risk-taking incentives. Overall, our findings suggest that the shareholder litigation rights are important to debtholders. (C) 2017 Elsevier B.V. All rights reserved.

引用

页码：169 / 186

页数：18

共 50 条

[1] Shareholder Litigation and Corporate Disclosure: Evidence from Derivative Lawsuits
Bourveau, Thomas
Lou, Yun
Wang, Rencheng
JOURNAL OF ACCOUNTING RESEARCH, 2018, 56 (03) : 797 - 842
[2] Do Banks Price Litigation Risk in Debt Contracting? Evidence from Class Action Lawsuits
Yuan, Qingbo
Zhang, Yunyan
JOURNAL OF BUSINESS FINANCE & ACCOUNTING, 2015, 42 (9-10) : 1310 - 1340
[3] SHAREHOLDER DERIVATIVE LITIGATION AND THE SPECIAL LITIGATION COMMITTEE
BROWN, RC
UNIVERSITY OF PITTSBURGH LAW REVIEW, 1982, 43 (03) : 601 - 648
[4] Litigation - Elan hit for six by US shareholder lawsuits
不详
CHEMISTRY & INDUSTRY, 2002, (04) : 5 - 5
[5] Tax avoidance, cost of debt and shareholder activism: Evidence from Korea
Lim, Youngdeok
JOURNAL OF BANKING & FINANCE, 2011, 35 (02) : 456 - 470
[6] Does Shareholder Litigation Risk Cause Public Firms to Delist? Evidence from Securities Class Action Lawsuits
Brogaard, Jonathan
Le, Nhan
Nguyen, Duc Duy
Sila, Vathunyoo
JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS, 2024, 59 (04) : 1726 - 1759
[7] JUGGLING SHAREHOLDER RIGHTS AND STRIKE SUITS IN DERIVATIVE LITIGATION - THE ALI DROPS THE BALL
SWANSON, CB
MINNESOTA LAW REVIEW, 1993, 77 (06) : 1339 - 1392
[8] The dark side of weakening shareholder litigation rights: Evidence from green patenting activities
Mbanyele, William
Muchenje, Linda
FINANCE RESEARCH LETTERS, 2022, 47
[9] Shareholder litigation rights and corporate payout policy: Evidence from universal demand laws
Do, Trung K.
RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE, 2021, 58
[10] Shareholder litigation rights and corporate cash holdings: Evidence from universal demand laws
Nguyen, Hien T.
Phan, Hieu, V
Sun, Lingna
JOURNAL OF CORPORATE FINANCE, 2018, 52 : 192 - 213

← 1 2 3 4 5 →