Corporate Litigation, Governance, and the Role of Law Firms

• 成果类型: Article; Early Access
• 署名作者: Ferrell, Frank Allen; Manconi, Alberto; Neretina, Ekaterina; Powley, William; Renneboog, Luc
• 署名单位: Harvard University; Bocconi University; Bocconi University; Tilburg University; European Corporate Governance Institute
• 刊物名称: JOURNAL OF ACCOUNTING RESEARCH
• ISSN/ISSBN: 0021-8456
• DOI: 10.1111/1475-679X.70021
• 发表日期: 2025
• 关键词: class-action lawsuits; SHAREHOLDER LITIGATION; EMPIRICAL-EXAMINATION; officers insurance; managerial opportunism; independent auditors; contingent fees; securities; disclosure; INFORMATION

摘要

We study plaintiff law firms in corporate litigation, focusing on star firms that dominate settlement outcomes. Stars are associated with larger settlements; however, much of this effect is predicted by the defendant's litigation insurance coverage, suggesting assortative matching of stars with lawsuits that have ex ante larger expected payoffs. Moreover, stars charge higher fees for a given settlement size. Additional tests suggest that visibility and information asymmetry vis-& agrave;-vis less sophisticated plaintiffs help sustain the stars' market share. These findings advance our understanding of corporate litigation and the agency relationship between plaintiff law firms and their clients.