MBA-IB Research Seminar will be held as follows.
Date: July 10, 2024
Time: 18:30 – 20:00
Place: University of Tsukuba, Tokyo campus, Room 122
Eligible participants: Faculty members, graduate students, and individuals with equivalent knowledge
Host faculty: Junjian Gu
Environmental Litigation Risk and Corporate Misconduct
Environmental regulations are important constraints to corporate environmental decision-making. In this paper, we examine how environmental and social (ES) litigation risk affects related corporate misconduct. We measure ES-related litigation risk by using the political ideology of circuit judges and find that higher ex-ante ES litigation risk is associated with more corporate ES misconducts. Such effect is stronger when the institutional investor holdings are higher. We then examine investor reactions and firm responses to heightened ES litigation risk. We find that investors react negatively to liberal judge appointments, and such effect is present among firms with lower ESG profiles. These firms also reduce capital investments and conduct fewer acquisitions. Overall, we explore a novel and important determinant on corporate environmental performance.
Dr. Wu joined the Fudan University in 2019. He received his B.A. in international economics from Shanghai Jiaotong University and his Ph.D. in Economics from University of Pittsburgh. He has published research in the several leading journals include The Accounting Review, Journal of Financial and Quantitative Analysis, Journal of Corporate Finance, and Journal of Banking & Finance, among others.
With Daniel Aobdia, Qin Li, Ke Na, The Influence of Labor Market Power in the Audit Profession, The Accounting Review.
With Eli Bartov and Agnes Cheng, Overbidding in Mergers and Acquisitions: An Accounting Perspective, The Accounting Review, 96(2), 55-79.
With Po-Hsuan Hsu, Yiqing Lu and Yuhai Xuan, Director Job Security and Corporate Innovation, Journal of Financial and Quantitative Analysis, 59(2), 652-689.
With Po-Hsuan Hsu, Kai Li and Xing Liu, Consolidating Product Lines via Mergers and Acquisitions: Evidence from the USPTO Trademark Data, Journal of Financial and Quantitative Analysiss, 57(8), 2968-2992.