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

R.M.M.J. Bauer; R. Braun

doi:10.2469/faj.v66.n6.6

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

R.M.M.J. Bauer^*, R. Braun

^*Corresponding author for this work

Finance

Research output: Contribution to journal › Article › Academic › peer-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 language	English
Pages (from-to)	74-92
Number of pages	19
Journal	Financial Analysts Journal
Volume	66
Issue number	6
DOIs	https://doi.org/10.2469/faj.v66.n6.6
Publication status	Published - 1 Jan 2010

Keywords

MUTUAL FUND PERFORMANCE
CORPORATE GOVERNANCE
PUBLIC OFFERINGS
COMPENSATION
LITIGATION
RETURNS
FRAUD

Access to Document

10.2469/faj.v66.n6.6

Cite this

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

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.",

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KW - CORPORATE GOVERNANCE

KW - PUBLIC OFFERINGS

KW - COMPENSATION

KW - LITIGATION

KW - RETURNS

KW - FRAUD

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