Quantifying executive threats: shareholder litigation Online publication date: Thu, 16-Jul-2015
by Andrew D. Banasiewicz
International Journal of Business Competition and Growth (IJBCG), Vol. 4, No. 1/2, 2015
Abstract: Threats confronting directors and officers of publicly traded companies are among the least understood dimensions of operational risk, all while the key manifestation of those threats - shareholder class action (SCA) litigation - counts among the most economically and reputationally damaging risks. The goal of the research outlined here is to offer a general overview of SCA as a key expression of executive threat, with a particular emphasis on one of the key root cause of those suits: accounting restatements. Representing corrections of, or amendments to earlier disclosed company performance details, restatements are recast in a more informationally-revealing context of 'restatement-type-materiality' conjoint, which yields a deeper theoretical understanding of conditions under which corrections of earlier released management disclosures can lead to significant heightening of executive risk. Also discussed is a general outline of a multi-attribute exposure assessment approach, which amalgamates multiple risk heightening proxies into a single evaluative framework.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business Competition and Growth (IJBCG):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook