Abstract:Plaintiffs’ lawyer fees and monetary awards have a distorting effect on shareholder value effects in US derivative cases. In this chapter we analyze the benefits of corporate litigation without these externalities using a data set for the Netherlands between 2002 and 2013. We find significant abnormal returns within a short timespan surrounding the filing and resolution of M&A-related lawsuits. Over longer horizons, resolutions have little impact on shareholder value. However, our findings suggest that lon… Show more
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