TY  - BOOK
AU  - Firth,Michael
AU  - Rui, Oliver M.
AU  - Wu, Wenfeng
TI  - The Effects of Political Connections and State Ownership on Corporate Litigation in China
SN  - 00222186
AV  - HB73 JOU 
PY  - 2011///
CY  - Chicago
PB  - University of Chicago Press
KW  - Business structures
KW  - Debt contracts
KW  - Defendants
KW  - Lawsuits
KW  - Legal systems
KW  - Litigation
KW  - Plaintiffs
KW  - Shareholders
KW  - Statistical significance
N2  - We examine the effects of corporate lawsuits in China and find that litigation announcements depress the stock prices of both defendant and plaintiff firms. Financially distressed defendants suffer lower stock returns. We find that politically connected defendants are favored in the judicial process: they have higher stock returns and are more likely to appeal against adverse outcomes and to obtain a favorable appeal result. State-controlled defendants fare better than privately controlled defendants when it comes to appeals but do not have higher stock returns. The evidence suggests that there is bias in the judicial process
UR  - https://doi.org/10.1086/659261
ER  -