Misdeeds Matter: Long-Term Stock Price Performance after the Filing of Class-Action Lawsuits
Posted: 9 Dec 2010
Date Written: December 8, 2010
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.
Keywords: Standards, Ethics, and Regulation (SER), Ethical Practices and Guidelines, Corporate Governance, Insider Trading. Performance Measurement and Evaluation, Performance Attribution, Equity Investments
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