Management and Market Reactions to Litigation: Do Shareholders Win When the Company Loses?
研究了诉讼对公司管理和股票市场表现的影响，发现和解公告引发显著负面市场反应，且和解后公司持续表现不佳，而判决结果的平均市场反应为正。
The article discusses a study which examined the impact of litigation on the company's management and stock market performance. The author assumes that the more a manager stands to lose in litigation, the harsher the market reaction to a settlement announcement. The author investigates whether there is a relationship between the existence of information a manager wants to keep private and the speed at which settlement is reached following litigation. The study found a significant negative reaction to the settlement announcement of litigation. The author also found that firms that chose settlement continued to under-perform in the market for up to one year following settlement. He also found that the average market reaction to a judgment was positive.