#2211. Courting innovation: The effects of litigation risk on corporate innovation

August 2026publication date
Proposal available till 30-05-2025
4 total number of authors per manuscript4500 $

The title of the journal is available only for the authors who have already paid for
Journal’s subject area:
Economics and Econometrics;
Business and International Management;
Law
Places in the authors’ list:
place 1place 2place 3place 4
FreeFreeFreeFree
1350 $1200 $1050 $900 $
Contract №2211.1 Contract №2211.2 Contract №2211.3 Contract №2211.4
1 place - free (for sale)
2 place - free (for sale)
3 place - free (for sale)
4 place - free (for sale)

Abstract:
In this study, we examine the impact of class action litigation shocks on corporate innovation. Our experimental design is based on an unanticipated court ruling that reduces the risk of shareholder class action lawsuits for firms located within the jurisdiction of the US Ninth Circuit. Innovation output by firms headquartered in this area increased significantly after this decision compared with that of firms elsewhere. This result is consistent with our trading hypothesis, which states that the threat of litigation leads to managerial myopia.
Keywords:
Class actions; Corporate governance; Innovation; Litigation risk; Patents

Contacts :
0