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- W4306768868 endingPage "106707" @default.
- W4306768868 startingPage "106707" @default.
- W4306768868 abstract "Does a decrease in shareholder litigation enhance managers’ monitoring efforts by ensuring adequate firm risk management? We explore how state universal demand (UD) laws (which limit shareholder litigation as a mechanism to discipline managers), affect bank holding companies’ (BHCs) risk. Using a difference-in-differences analysis, we show that BHCs reduce their tail risk exposures after the implementation of UD laws, which is achieved by improving loan asset quality. Indeed, BHCs appear to apply stricter contract terms for syndicate loans to risky and opaque borrowers. We also show that UD law implementation leads to changes in BHC board composition by increasing the proportion of outside directors, the number of independent directors in audit committees and the number of independent directors with financial expertise." @default.
- W4306768868 created "2022-10-19" @default.
- W4306768868 creator A5032225236 @default.
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- W4306768868 creator A5064094319 @default.
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- W4306768868 date "2023-01-01" @default.
- W4306768868 modified "2023-09-27" @default.
- W4306768868 title "Shareholder litigation and bank risk" @default.
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