Internal and external discipline following securities class actions

Companies are sometimes accused of misleading the market. The SEC can punish this with enforcement actions. Alternatively, shareholders can seek redress through a shareholder class action (SCA). Thus, using a sample of 416 securities class actions, this paper shows that SCAs are a catalyst to promote disciplinary takeovers, CEO turnover and pay-cuts, and harm CEOs’ future job-prospects.

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Year of publication:	2012
Authors:	Humphery-Jenner, Mark L.
Published in:	Journal of Financial Intermediation. - Elsevier, ISSN 1042-9573. - Vol. 21.2012, 1, p. 151-179
Publisher:	Elsevier
Subject:	Securities class actions \| Securities law \| Governance \| Ethics \| Takeovers \| Managerial turnover \| Fraud \| Disclosure

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010688285