Corporate financialization and litigation risk

Yang Li, Xiaorong Lin, Xingfan Lei, Ji Ge, Jingyi Guo and Wenxin Xia

Finance Research Letters, 2024, vol. 67, issue PA

Abstract: This study empirically analyses the impact of corporate financialization on litigation risk and finds that there is a U-shaped relationship between corporate financialization and litigation risk, whereby an increase in the level of financialization reduces litigation risk before a firm's level of financialization reaches the optimal level, and an increase in the level of financialization exacerbates litigation risk after a firm's level of financialization exceeds the optimal level.

Keywords: Corporate financialization; Litigation risk; Under-financialization; Over-financialization (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324008894

DOI: 10.1016/j.frl.2024.105859

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