[Journal:] The Icfai University Journal of Corporate Governance [ISSN:] 0972-6853 [Volume:] 8 [Issue:] 2 [Pages:] 40-55
The probability for shareholder litigation is studied and how corporate governance characteristics and other factors explain it. Shareholder litigation results from failure of corporate governance. Thus a better quality of corporate governance is hypothesized to decrease the litigation probability. Corporate governance index is constructed based on principal components. It is found to be a significant predictor of shareholder litigation.
shareholder litigation corporate governance principal components panel logit