The Effects of Securities Class Action Litigation on Corporate Liquidity and Investment Policy
研究发现，面临更高证券集体诉讼风险的公司会持有更多现金以应对未来和解费用，同时减少资本支出，且现金的市场价值更低。
Abstract The risk of securities class action litigation alters corporate savings and investment policy. Firms with greater exposure to securities litigation hold significantly more cash in anticipation of future settlements and other related costs. The result is due to firms accumulating cash in anticipation of lawsuits and not a consequence of plaintiffs targeting firms with high cash levels. The market value of cash is lower for firms exposed to litigation risk. Corporate investment decisions are also affected by litigation risk, as firms reduce capital expenditures in response. Our results are robust to endogeneity concerns and possible spurious temporal effects.