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Corporate financialization and litigation risk

Author

Listed:
  • Li, Yang
  • Lin, Xiaorong
  • Lei, Xingfan
  • Ge, Ji
  • Guo, Jingyi
  • Xia, Wenxin

Abstract

This study empirically analyses the impact of corporate financialization on litigation risk and finds that there is a U-shaped relationship between corporate financialization and litigation risk, whereby an increase in the level of financialization reduces litigation risk before a firm's level of financialization reaches the optimal level, and an increase in the level of financialization exacerbates litigation risk after a firm's level of financialization exceeds the optimal level.

Suggested Citation

  • Li, Yang & Lin, Xiaorong & Lei, Xingfan & Ge, Ji & Guo, Jingyi & Xia, Wenxin, 2024. "Corporate financialization and litigation risk," Finance Research Letters, Elsevier, vol. 67(PA).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324008894
    DOI: 10.1016/j.frl.2024.105859
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    References listed on IDEAS

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