"We examine whether institutional investors are able to avoid future litigation. Our results show that institutions provide a fiduciary role by decreasing or eliminating their positions in sued firms well before litigation begins. We also find that institutional groups with high monitoring ability (independent investment advisors and mutual funds) are more proactive in their trading behavior than are institutions with low monitoring ability (banks, insurance companies, and unclassified institutions such as endowments, foundations, and self-managed pension funds). We find that percentage changes in institutional ownership are correlated with public information available more than two quarters before litigation." Copyright (c) 2008 Financial Management Association International..

Purpose The purpose of this study is to suggest an approach to regain consumer trust after negative effects of greenwashing that draws corporations and consumers into a conflicted relationship. Design/methodology/approach The authors collect and interpret qualitative data from in-depth interviews to develop a theoretical approach that enables the rebuilding of trust between greenwashing corporations and their consumers using the concept of psychological resilience. Findings This analysis indicates that the approach is an interaction between consumers with green brand loyalty and greenwashing corporations. This type of consumer demands emotional factors, functional factors and legitimate factors in the process of psychological resilience, and after greenwashing, corporations should select appropriate recovery strategies to stimulate these protective factors. Originality/value Previous research studied green consumer trust in the marketing field but did not explore the core of trust which was regarded as a cognitive process. This paper investigates green consumer behaviour under the perspective of psychological resilience and makes an innovative attempt to understand drivers of regaining consumer trust. Previous research works put forward a series of strategies related to regaining trust, but they did not discuss the mechanisms by which these strategies work. Using the method of grounded theory, we attempt to reveal the “black box” of consumers cognition after greenwashing and propose a strategy for regaining consumer trust.

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On the Stock Market's Reaction to Major Railroad Accidents

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We examine whether underwriters have an information advantage over other institutional investors in new public companies. Focusing on firms targeted by IPO‐related class action litigation and a matched sample of nonsued firms, we find evidence suggesting that lead underwriters retain an information advantage in the firms they take public and that they capitalize on this information by closing out or reducing their holdings in sued firms prior to the eventual litigation date. An examination of analyst opinions suggests that analysts affiliated with lead underwriters are reluctant to reduce their earnings forecasts or downgrade sued firms before the litigation date.

We examine whether underwriters have an information advantage over other institutional investors in new public companies. Focusing on firms targeted by IPO-related class action litigation and a matched sample of nonsued firms, we find evidence suggesting that lead underwriters retain an information advantage in the firms they take public and that they capitalize on this information by closing out or reducing their holdings in sued firms prior to the eventual litigation date. An examination of analyst opinions suggests that analysts affiliated with lead underwriters are reluctant to reduce their earnings forecasts or downgrade sued firms before the litigation date.