<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>In addition to reducing R&amp;D investment and changing senior managers or corporate name, the significant uncertainty and reputation shock brought by civil litigation may also have a vital impact on corporate governance of the sued company. We use A-share listed companies in Shanghai and Shenzhen stock exchanges from 2011 to 2018 to empirically examine the impact of civil litigation on corporate governance and its mechanism. It is found that, civil litigation is negatively correlated with corporate governance, and financing liabilities (FL) play an intermediary role in the negative correlation. Furthermore, judicial local protectionism weakens the negative correlation between civil litigation and corporate governance. Finally we close with directions for future research.</p>
</abstract>

In addition to reducing R&D investment and changing senior managers or corporate name, the significant uncertainty and reputation shock brought by civil litigation may also have a vital impact on corporate governance of the sued company. We use A-share listed companies in Shanghai and Shenzhen stock exchanges from 2011 to 2018 to empirically examine the impact of civil litigation on corporate governance and its mechanism. It is found that, civil litigation is negatively correlated with corporate governance, and financing liabilities (FL) play an intermediary role in the negative correlation. Furthermore, judicial local protectionism weakens the negative correlation between civil litigation and corporate governance. Finally we close with directions for future research.

Mathematical analysis of civil litigation and empirical research of corporate governance

Faculty of Financial Management, Accounting School

Shanghai Lixin University of Accounting and Finance

Faculty of Management, Operations and Supply Chain Management

Applied Mathematics and Nonlinear Sciences

This work is licensed under the Creative Commons Attribution 4.0 International License.

In addition to reducing R&D investment and changing senior managers or corporate name, the significant uncertainty and reputation shock brought by civil...

Mathematical analysis of civil litigation and empirical research of corporate governance

Data publikacji: 08 kwi 2022

Zakres stron: 731 - 744

Otrzymano: 29 maj 2021

Przyjęty: 27 wrz 2021

DOI: https://doi.org/10.2478/amns.2022.1.00003

Słowa kluczowe
Mathematical analysis, civil litigation, corporate governance, empirical research

© 2021 Junling Liu et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Mathematical analysis of civil litigation and empirical research of corporate governance

Data publikacji: 08 kwi 2022

Zakres stron: 731 - 744

Otrzymano: 29 maj 2021

Przyjęty: 27 wrz 2021

DOI: https://doi.org/10.2478/amns.2022.1.00003

Słowa kluczoweMathematical analysis, civil litigation, corporate governance, empirical research

© 2021 Junling Liu et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Słowa kluczowe
Mathematical analysis, civil litigation, corporate governance, empirical research