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Full-Text Articles in Finance and Financial Management
A Global Analysis Of Corporate Litigation Risk And Costs, Matteo P. Arena, Stephen P. Ferris
A Global Analysis Of Corporate Litigation Risk And Costs, Matteo P. Arena, Stephen P. Ferris
Finance Faculty Research and Publications
We analyze a unique hand-collected international sample of 475 corporate lawsuits involving 361 publicly-traded defendant firms headquartered in 16 developed countries to explore how country factors influence litigation risk, equity market value, lawsuit outcomes, and settlement costs. Unlike U.S.-focused studies, we do not find a significant relation between stock turnover, equity performance, and the probability of litigation. Defendant firms headquartered in civil law countries or countries with less efficient judiciary systems face lower litigation risk and costs as well as less share price decline at filing. Countries whose courts are less independent demonstrate a significant bias against foreign defendant firms.
The Effect Of Taxes On Multinational Debt Location, Matteo Arena, Andrew H. Roper
The Effect Of Taxes On Multinational Debt Location, Matteo Arena, Andrew H. Roper
Finance Faculty Research and Publications
We provide new evidence that differences in international tax rates and tax regimes affect multinational firms' debt location decisions. Our sample contains 8287 debt issues from 2437 firms headquartered in 23 different countries with debt-issuing subsidiaries in 59 countries. We analyze firms' marginal decisions of where to issue debt to investigate the influence of a comprehensive set of tax-related effects, including differences in personal and corporate tax rates, tax credit and exemption systems, and bi-lateral cross-country withholding taxes on interest and dividend payments. Our results show that differences in personal and corporate tax rates, the presence of dividend imputation or …