U.S. class action lawsuits targeting foreign firms: The country spillover effect
© 2017 Elsevier B.V. We find negative price reactions among non-sued U.S.-listed foreign firms to filings of U.S. shareholder lawsuits targeting firms from their home country. This country spillover effect is stronger for lawsuits, especially accounting-related ones, targeting firms from more poorl...
| Main Authors: | , , , |
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| Format: | Journal Article |
| Published: |
Elsevier BV * North-Holland
2017
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| Online Access: | http://hdl.handle.net/20.500.11937/71930 |
| _version_ | 1848762612708278272 |
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| author | Huang, X. Rui, Yixuan Shen, J. Tian, G. |
| author_facet | Huang, X. Rui, Yixuan Shen, J. Tian, G. |
| author_sort | Huang, X. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | © 2017 Elsevier B.V. We find negative price reactions among non-sued U.S.-listed foreign firms to filings of U.S. shareholder lawsuits targeting firms from their home country. This country spillover effect is stronger for lawsuits, especially accounting-related ones, targeting firms from more poorly-governed countries. We also document a stronger country spillover effect for a recent wave of U.S. lawsuits targeting Chinese issuers than for other standalone litigation. Finally, a foreign firm's price reaction to lawsuits targeting its country peers predicts its chance of being sued in the future. Our findings are consistent with investors updating a foreign firm's litigation risk upon lawsuits targeting its country peers. |
| first_indexed | 2025-11-14T10:50:20Z |
| format | Journal Article |
| id | curtin-20.500.11937-71930 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T10:50:20Z |
| publishDate | 2017 |
| publisher | Elsevier BV * North-Holland |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-719302018-12-13T09:32:28Z U.S. class action lawsuits targeting foreign firms: The country spillover effect Huang, X. Rui, Yixuan Shen, J. Tian, G. © 2017 Elsevier B.V. We find negative price reactions among non-sued U.S.-listed foreign firms to filings of U.S. shareholder lawsuits targeting firms from their home country. This country spillover effect is stronger for lawsuits, especially accounting-related ones, targeting firms from more poorly-governed countries. We also document a stronger country spillover effect for a recent wave of U.S. lawsuits targeting Chinese issuers than for other standalone litigation. Finally, a foreign firm's price reaction to lawsuits targeting its country peers predicts its chance of being sued in the future. Our findings are consistent with investors updating a foreign firm's litigation risk upon lawsuits targeting its country peers. 2017 Journal Article http://hdl.handle.net/20.500.11937/71930 10.1016/j.jcorpfin.2017.05.011 Elsevier BV * North-Holland restricted |
| spellingShingle | Huang, X. Rui, Yixuan Shen, J. Tian, G. U.S. class action lawsuits targeting foreign firms: The country spillover effect |
| title | U.S. class action lawsuits targeting foreign firms: The country spillover effect |
| title_full | U.S. class action lawsuits targeting foreign firms: The country spillover effect |
| title_fullStr | U.S. class action lawsuits targeting foreign firms: The country spillover effect |
| title_full_unstemmed | U.S. class action lawsuits targeting foreign firms: The country spillover effect |
| title_short | U.S. class action lawsuits targeting foreign firms: The country spillover effect |
| title_sort | u.s. class action lawsuits targeting foreign firms: the country spillover effect |
| url | http://hdl.handle.net/20.500.11937/71930 |