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

Posted: 9 Dec 2010

See all articles by Rob Bauer

Rob Bauer

Maastricht University

Robin Braun

Maastricht University

Date Written: December 8, 2010

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.

Keywords: Standards, Ethics, and Regulation (SER), Ethical Practices and Guidelines, Corporate Governance, Insider Trading. Performance Measurement and Evaluation, Performance Attribution, Equity Investments

Suggested Citation

Bauer, Rob and Braun, Robin, Misdeeds Matter: Long-Term Stock Price Performance after the Filing of Class-Action Lawsuits (December 8, 2010). Financial Analysts Journal, Vol. 66, No. 6, 2010. Available at SSRN: https://ssrn.com/abstract=1722364

Rob Bauer (Contact Author)

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands
+31 43 3883871 (Phone)

Robin Braun

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands
+31 (0) 43 388 3687 (Phone)
+31 (0) 43 388 4875 (Fax)

HOME PAGE: http://www.fdewb.unimaas.nl/finance/faculty/braun

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