Do the merits matter more? The impact of the Private Securities Litigation Reform Act

被引：161

作者：

Johnson, Marilyn F. ^{[1
]}

Nelson, Karen K.

Pritchard, A. C.

机构：

[1] Michigan State Univ, Eli Broad Coll Business, E Lansing, MI 48824 USA

[2] Rice Univ, Jones Grad Sch Management, Houston, TX 77251 USA

[3] Univ Michigan, Sch Law, Ann Arbor, MI 48109 USA

来源：

JOURNAL OF LAW ECONOMICS & ORGANIZATION | 2007年 / 23卷 / 03期

关键词：

D O I：

10.1093/jleo/ewm015

中图分类号：

F [经济];

学科分类号：

02 ;

摘要：

This article examines the effect of the Private Securities Litigation Reform Act of 1995 (PSLRA) on stockholder lawsuits. We explore the role of restatements, earnings forecasts, and insider trading in the filing and resolution of lawsuits for a sample of high technology firms. Consistent with our predictions, there is a post-PSLRA shift away from litigation based on forward-looking earnings disclosures. Conversely, there is a significantly greater correlation between litigation and both earnings restatements and abnormal insider selling after the PSLRA. Finally, we find a post-PSLRA increase in the likelihood of settlement for cases involving earnings restatements.

引用

页码：627 / 652

页数：26

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