Plausibly Exogenous [1436] - Litigation Threat (01/06/2024)
LHS Variable
Compensation design
RHS Variable
Financial misreporting
Source of Exogenous Variation
Exogenous reduction in litigation threat following a 1999 ruling of the U.S. Ninth Circuit Court of Appeals
- Yang, Yu, and Zheng (2021), “The impact of shareholder litigation risk on equity incentives: Evidence from a quasi-natural experiment”