Open Access. Powered by Scholars. Published by Universities.®

Business Law, Public Responsibility, and Ethics Commons

Open Access. Powered by Scholars. Published by Universities.®

Corporate Finance

Theses/Dissertations

University of Tennessee, Knoxville

Articles 1 - 1 of 1

Full-Text Articles in Business Law, Public Responsibility, and Ethics

Cross-Listed Firms And Shareholder-Initiated Lawsuits: The Market Penalties Of Securities Class Action Lawsuits Against Foreign Firms, Kathryn Mary Schumann May 2012

Cross-Listed Firms And Shareholder-Initiated Lawsuits: The Market Penalties Of Securities Class Action Lawsuits Against Foreign Firms, Kathryn Mary Schumann

Doctoral Dissertations

This paper examines the market penalties levied by shareholders against firms that are alleged to have violated securities laws within the U.S. Using a sample of private securities class action cases brought against foreign firms that cross-list on the major U.S. exchanges, this paper presents evidence that the enforcement risk criticism may not be as severe as initially thought. I examine market penalties at alleged violation disclosure dates and securities class action filing dates and find that each event corresponds to an economically and statistically significant loss of value for the accused firm. On average I find that ...