EconPapers    
Economics at your fingertips  
 

Corporate litigation and changes in CEO reputation: Guidance from U.S. Federal Court lawsuits

Chelsea Liu, Joseph Aharony, Grant Richardson and Alfred Yawson

Journal of Contemporary Accounting and Economics, 2016, vol. 12, issue 1, 15-34

Abstract: This study examines corporate litigation and changes in CEO reputation. Based on a sample of 9959 filed and settled environmental, antitrust, intellectual property (IP) and contractual lawsuits in the U.S. Federal Courts over the 2000–2007 period, we find that CEOs experience poorer reemployment prospects following contractual lawsuits. Additionally, reputational consequences depend significantly on the nature of the allegation and lawsuit merit. We also observe that IP lawsuits are associated with an increase in the number of outside board seats; no penalties follow politically sensitive environmental lawsuits. Overall, our findings contribute to the extant literature on market-based penalties for corporate wrongdoing.

Keywords: Executive reputation; Corporate litigation; Corporate governance; Executive labor market; Lawsuits (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1815566916000047
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jocaae:v:12:y:2016:i:1:p:15-34

Access Statistics for this article

Journal of Contemporary Accounting and Economics is currently edited by Agnes C.S. Cheng, P. Clarkson, F.A. Gul, Zoltan Matolcsy, Dan Simunic and Ben Srinidhi

More articles in Journal of Contemporary Accounting and Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2018-05-05
Handle: RePEc:eee:jocaae:v:12:y:2016:i:1:p:15-34