Misdeeds Matter: Long-Term Stock Price Performance after the Filing of Class-Action Lawsuits

R.M.M.J. Bauer, R. Braun

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

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 decision-making strategies.

Original languageEnglish
Pages (from-to)74-92
Number of pages19
JournalFinancial Analysts Journal
Volume66
Issue number6
DOIs
Publication statusPublished - 1 Jan 2010

Keywords

  • MUTUAL FUND PERFORMANCE
  • CORPORATE GOVERNANCE
  • PUBLIC OFFERINGS
  • COMPENSATION
  • LITIGATION
  • RETURNS
  • FRAUD

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