Plausibly Exogenous [990] - Universal Demand Laws (10/15/2022)
LHS Variable
Opportunistic insider trading
RHS Variable
Risk of shareholder lawsuits
Source of Exogenous Variation
Staggered adoption of Universal Demand laws, which make it harder for shareholders to bring derivative lawsuits against directors and officers
- Adhikari, Agrawal, and Sharma (2022), “Does Litigation Risk Deter Insider Trading? Evidence from Universal Demand Laws”