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Essays on Finance and Law.

紀錄類型:	書目-電子資源 : Monograph/item
正題名/作者:	Essays on Finance and Law./
作者:	Dong, Mengming Michael.
出版者:	Ann Arbor : ProQuest Dissertations & Theses, : 2020,
面頁冊數:	171 p.
附註:	Source: Dissertations Abstracts International, Volume: 83-04, Section: B.
Contained By:	Dissertations Abstracts International83-04B.
標題:	Law. -
電子資源:	http://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=28736144
ISBN:	9798535525457

Essays on Finance and Law.
Dong, Mengming Michael.

Essays on Finance and Law. - Ann Arbor : ProQuest Dissertations & Theses, 2020 - 171 p.

Source: Dissertations Abstracts International, Volume: 83-04, Section: B.

Thesis (Ph.D.)--Rice University, 2020.

This item must not be sold to any third party vendors.

This dissertation contains three chapters that study topics in financial economics and how finance affects legal outcomes. In the first chapter, I study how access to consumer litigation funding (CLF) impacts outcomes in the legal system. CLF provides cash advances to consumer plaintiffs in pursuing a tort complaint. Using exogenous variations in access to CLF resulting from staggered state law changes in the U.S., I find evidence that restricting CLF causes a decline in the number of tort lawsuits filed with courts by 18.7 percent. Such finding contrasts the theoretical predictions in the literature that CLF induces settlement, and could be due to the fact that, in reality, defendants hardly ever know whether the plaintiff is funded by CLF. I also find that restricting CLF increases the proportion of liability rulings at trial that favor the plaintiffs by 5.9 percentage points but does not change the portion of lawsuits that go to trial. Overall, these findings suggest that access to CLF either incentivizes plaintiffs to file lawsuits that are less likely to be successful in the court or induces moral hazards of plaintiffs during the trial process.In the second chapter, I examine the conflicting evidence in the finance literature on whether the equity markets underreact or overreact to liquidity shocks. Using comprehensive stock-level news data, I find that the market underreacts to liquidity shocks whether there is contemporaneous public news or not. Furthermore, when there is public news released contemporaneously, the price discovery process of liquidity shocks does not get any faster. In certain tests, the drift is actually significantly larger. This shows that even though public news reveals more information to investors and draws more investor attention, it does not help them incorporate liquidity shocks into prices. Such findings are consistent with the notion that liquidity level overall is rather difficult for average investors to grasp. Information environment and investor inattention are not the market frictions that result in the market's underreaction to liquidity shocks.In the third chapter, my coauthors and I explore the impacts of early-life hardship experiences on corporate leaders' Corporate Social Responsibility (CSR) decisions and address this question by exploiting the Down-to-the-Countryside Movement in China from 1956 to 1978. This movement is mandatory and is an extreme early-life hardship for the people involved. We find that the chairmen of the board and CEOs who were sent to the countryside and mountains have significantly less CSR practice in their companies than their peers who were not sent. We argue that corporate leaders have less CSR practice because they believe that they have already suffered enough in life and have developed an in-depth aversion to social contribution. Such results are especially strong for chairmen in state-owned enterprises (SOEs) and CEOs in non-state-owned companies(non-SOEs) because chairmen have more decision power in SOEs and CEOs have more decision power in non-SOEs. Moreover, this negative association is mediated by corporate leaders' college education and the corporate governance structure of the enterprise they lead.

ISBN: 9798535525457Subjects--Topical Terms:

600858
Law.
Subjects--Index Terms:

Consumer litigation funding

Essays on Finance and Law.
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260 1 $a Ann Arbor : $b ProQuest Dissertations & Theses, $c 2020
300 $a 171 p.
500 $a Source: Dissertations Abstracts International, Volume: 83-04, Section: B.
500 $a Advisor: Grullon, Gustavo.
502 $a Thesis (Ph.D.)--Rice University, 2020.
506 $a This item must not be sold to any third party vendors.
520 $a This dissertation contains three chapters that study topics in financial economics and how finance affects legal outcomes. In the first chapter, I study how access to consumer litigation funding (CLF) impacts outcomes in the legal system. CLF provides cash advances to consumer plaintiffs in pursuing a tort complaint. Using exogenous variations in access to CLF resulting from staggered state law changes in the U.S., I find evidence that restricting CLF causes a decline in the number of tort lawsuits filed with courts by 18.7 percent. Such finding contrasts the theoretical predictions in the literature that CLF induces settlement, and could be due to the fact that, in reality, defendants hardly ever know whether the plaintiff is funded by CLF. I also find that restricting CLF increases the proportion of liability rulings at trial that favor the plaintiffs by 5.9 percentage points but does not change the portion of lawsuits that go to trial. Overall, these findings suggest that access to CLF either incentivizes plaintiffs to file lawsuits that are less likely to be successful in the court or induces moral hazards of plaintiffs during the trial process.In the second chapter, I examine the conflicting evidence in the finance literature on whether the equity markets underreact or overreact to liquidity shocks. Using comprehensive stock-level news data, I find that the market underreacts to liquidity shocks whether there is contemporaneous public news or not. Furthermore, when there is public news released contemporaneously, the price discovery process of liquidity shocks does not get any faster. In certain tests, the drift is actually significantly larger. This shows that even though public news reveals more information to investors and draws more investor attention, it does not help them incorporate liquidity shocks into prices. Such findings are consistent with the notion that liquidity level overall is rather difficult for average investors to grasp. Information environment and investor inattention are not the market frictions that result in the market's underreaction to liquidity shocks.In the third chapter, my coauthors and I explore the impacts of early-life hardship experiences on corporate leaders' Corporate Social Responsibility (CSR) decisions and address this question by exploiting the Down-to-the-Countryside Movement in China from 1956 to 1978. This movement is mandatory and is an extreme early-life hardship for the people involved. We find that the chairmen of the board and CEOs who were sent to the countryside and mountains have significantly less CSR practice in their companies than their peers who were not sent. We argue that corporate leaders have less CSR practice because they believe that they have already suffered enough in life and have developed an in-depth aversion to social contribution. Such results are especially strong for chairmen in state-owned enterprises (SOEs) and CEOs in non-state-owned companies(non-SOEs) because chairmen have more decision power in SOEs and CEOs have more decision power in non-SOEs. Moreover, this negative association is mediated by corporate leaders' college education and the corporate governance structure of the enterprise they lead.
590 $a School code: 0187.
650 4 $a Law. $3 600858
650 4 $a Law enforcement. $3 607408
650 4 $a Behavioral psychology. $3 2122788
650 4 $a Finance. $3 542899
650 4 $a Evidence. $3 583147
650 4 $a Attorneys. $3 3562898
650 4 $a Funding. $3 3557916
650 4 $a Equilibrium. $3 668417
650 4 $a Injuries. $3 3563044
650 4 $a Liability. $3 3562832
650 4 $a State laws. $3 3562915
650 4 $a Legislatures. $3 3682978
650 4 $a Hypotheses. $3 3560118
650 4 $a Trials. $3 623874
650 4 $a Medical research. $2 bicssc $3 1556686
650 4 $a Supreme Court decisions. $3 3682979
650 4 $a Medical malpractice. $3 3682980
650 4 $a Torts. $3 768908
653 $a Consumer litigation funding
653 $a Financial constraints
653 $a Liquidity shocks
653 $a Public news
653 $a Market's underreaction
653 $a Early-life experiences
653 $a Corporate social responsibilities
690 $a 0508
690 $a 0398
690 $a 0384
690 $a 0206
710 2 $a Rice University. $b Business. $3 3185780
773 0 $t Dissertations Abstracts International $g 83-04B.
790 $a 0187
791 $a Ph.D.
792 $a 2020
793 $a English
856 4 0 $u http://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=28736144