Enterprise litigation risk and enterprise performance

Hui He and Wei Shi

Finance Research Letters, 2023, vol. 55, issue PA

Abstract: With the continuous improvement of China's legal system, corporate litigation risk has become a hot topic of academic research. This paper selects data from 2011 to 2020 to explore the impact of litigation risk on corporate performance. It further investigates the impact of litigation risk on corporate performance through the level of debt financing. It is found that: the higher the corporate litigation risk, the lower the level of corporate performance; the higher the level of internal controlling and analyst following, the lower the effect of litigation risk on corporate performance; the mediating effect shows that litigation risk is transmitted negatively to corporate performance through corporate debt financing ability.

Keywords: Litigation risk; Corporate performance; Internal controlling; Analyst following; Debt financing (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:55:y:2023:i:pa:s1544612323001563

DOI: 10.1016/j.frl.2023.103783

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