The effect of investor attention on fraud discovery and value loss in securities class action litigation
研究了投资者关注如何影响证券集体诉讼中的价值损失和欺诈发现，发现高关注度加剧声誉损害和股价下跌，并加速诉讼进程。
Abstract We examine the effect of investor attention on value loss due to securities class action lawsuits and litigation‐based fraud discovery. We find that investor attention is positively associated with damage to corporate reputation and the magnitude of the value losses suffered by defendant firms. The reputational damage to defendant firms with higher investor attention is evident from poor operational performance and lower institutional ownership after filing. Investor attention is positively associated with the diffusion of information regarding fraud and it accelerates lawsuit filing. The effects of investor attention, however, are not subsumed by the severity of the fraud. Our results are robust to a battery of tests that addresses selection and endogeneity concerns.