Do courts matter for firm value? : evidence from the U.S. court system; second draft / Stefano Colonnello, Christoph Herpfer
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Discovery
861783123
URN
urn:nbn:de:gbv:3:2-59437
DOI
ISBN
ISSN
Autorin / Autor
Beiträger
Körperschaft
Erschienen
Halle (Saale), Germany : Halle Institute for Economic Research (IWH), June 2016
Umfang
1 Online-Ressource (III, 54 Seiten) : Diagramme
Ausgabevermerk
Second draft: April 25, 2016
Sprache
eng
Anmerkungen
Gesehen am 06.07.2016
Inhaltliche Zusammenfassung
We estimate the link between the court system and firm value by exploiting a U.S. Supreme Court ruling which changed firms' exposure to different courts. We find that exposure to courts which are highly ranked by the U.S. Chamber of Commerce increases firm value. The effect is driven by courts‘ attitude towards businesses more than by their efficiency and is more pronounced for firms in industries with high litigation risk. We also test whether firms benefit from the ability to steer lawsuits into friendly courts, so-called forum shopping. We provide evidence that a reduction in firms‘ ability to forum shop decreases firm value, whereas a reduction in plaintiffs‘ ability to forum shop increases firm value.
Schriftenreihe
IWH-Diskussionspapiere ; 2016, no. 1 [rev.] ppn:837399270