IDEAS home Printed from https://ideas.repec.org/a/taf/hbhfxx/v24y2023i2p183-201.html
   My bibliography  Save this article

Founder-Led Firms and Operational Litigation Risk

Author

Listed:
  • Mohammad Hashemi Joo
  • Edward Lawrence
  • Yuka Nishikawa

Abstract

This study investigates the relationship between founder-led firms and non-securities (operational) litigation risk. We postulate lower operational litigation risk for founder-led firms than for nonfounder-led firms based on founder-CEOs’ limited agency conflicts and stronger emotional attachment to the firms they establish. Our empirical results suggest that having a founder as CEO mitigates the risk of being involved in operational lawsuits that could result in substantial financial losses and long-lasting negative consequences.

Suggested Citation

  • Mohammad Hashemi Joo & Edward Lawrence & Yuka Nishikawa, 2023. "Founder-Led Firms and Operational Litigation Risk," Journal of Behavioral Finance, Taylor & Francis Journals, vol. 24(2), pages 183-201, April.
    • Handle: RePEc:taf:hbhfxx:v:24:y:2023:i:2:p:183-201
    DOI: 10.1080/15427560.2021.1949716
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/15427560.2021.1949716
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/15427560.2021.1949716?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:hbhfxx:v:24:y:2023:i:2:p:183-201. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/hbhf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.