Impact of U.S. class action lawsuits on cross-listed foreign companies

dc.contributor.advisor Tian, Yuan en_US Huang, Xuxing en_US 2022-03-15T10:38:25Z 2022-03-15T10:38:25Z 2012 en_US
dc.description.abstract This study evaluates the short-term valuation impact of U.S. class action lawsuits by focusing on both sued and non-sued foreign companies listed in the United States. Using a comprehensive database that includes stock- and company-level information in both the U.S. and local home markets, I examine how private U.S. securities litigations affect the market value of both sued foreign companies and peer foreign firms not accused of wrongdoing. I find that during the event period surrounding the lawsuit-filing date, there is a significant negative stock price reaction for the sued foreign companies. Moreover, investors also tend to react negatively towards non-sued foreign issuers during this period. The logistic regression results also suggest that the determinants of lawsuit propensity are similar for foreign firms cross-listed in the U.S. and U.S. domestic companies. Finally, certain firm-, lawsuit-, and country-level characteristics can explain the degree of stock market reactions. The overall results provide evidence that private class action lawsuits in the U.S. have economically significant impact on cross-listed foreign issuers, thus playing an important role in overseeing and disciplining foreign companies. en_US
dc.language English
dc.language.iso EN en_US
dc.publisher UNSW, Sydney en_US
dc.rights CC BY-NC-ND 3.0 en_US
dc.rights.uri en_US
dc.subject.other Cross-listing en_US
dc.subject.other Private litigation en_US
dc.title Impact of U.S. class action lawsuits on cross-listed foreign companies en_US
dc.type Thesis en_US
dcterms.accessRights open access
dcterms.rightsHolder Huang, Xuxing
dspace.entity.type Publication en_US
unsw.accessRights.uri 2015-05-31 en_US
unsw.description.embargoNote Embargoed until 2015-05-31
unsw.relation.faculty Business
unsw.relation.originalPublicationAffiliation Huang, Xuxing, Banking & Finance, Australian School of Business, UNSW en_US
unsw.relation.originalPublicationAffiliation Tian, Yuan, Australian School of Business, UNSW en_US School of Banking & Finance *
unsw.thesis.degreetype Masters Thesis en_US
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