Equity value implications of the SEC Exchange Act Rule 13a-14 : a litigation cost perspective/ created by Mukesh Garg, Vic Naiker and Farshid Navissi

By:

Garg, Mukesh [author]

Contributor(s):

Material type: Text

TextSeries: Australian journal of management ; Volume 37, number 1Los Angeles : Sage, 2012Content type:

text

Media type:

unmediated

Carrier type:

volume

ISSN:

03128962

Subject(s):

CEO and CFO certification -- Financial reports -- Abnormal returns

LOC classification:

HD31 AUS

Online resources:

Click here to access online

Abstract: The purpose of our study is to assess the role of litigation risk in the stock price setting process in relation to the Securities and Exchange Commission (SEC) Exchange Act Rule 13a-14. We employ 12 June, the proposal of Rule 13a-14, and 27 June, the ruling of certification requirement, as event dates, and investigate litigation cost implications of the SEC proposal and ruling. We focus on firms in industries that are highly exposed to class action lawsuits and find negative abnormal returns surrounding 12 June, and positive abnormal returns surrounding 27 June, for firms relieved from compliance requirements. The results are more profound for firms in high-litigation-risk industries.

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Holdings
Item type	Current library	Call number	Vol info	Status	Notes	Date due	Barcode
Journal Article	Main Library - Special Collections	HD31 AUS (Browse shelf(Opens below))	Vol. 37, no.1 (pages 77-98)	Not for loan	For in house use only

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The purpose of our study is to assess the role of litigation risk in the stock price setting process in relation to the Securities and Exchange Commission (SEC) Exchange Act Rule 13a-14. We employ 12 June, the proposal of Rule 13a-14, and 27 June, the ruling of certification requirement, as event dates, and investigate litigation cost implications of the SEC proposal and ruling. We focus on firms in industries that are highly exposed to class action lawsuits and find negative abnormal returns surrounding 12 June, and positive abnormal returns surrounding 27 June, for firms relieved from compliance requirements. The results are more profound for firms in high-litigation-risk industries.

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