NEW: Litigation Risk and the Independent Director Labor Market examines how litigation risk affects the independent director employment market and whether litigation risk as a corporate governance mechanism that varies by firm, following the Delaware Supreme Court’s 2017 decision in In re Investors Bancorp, Inc. Stockholder Litigation, No. 169, 2017, opinion (Del. Dec. 13, 2017; rev. Dec. 19, 2017), focusing on changes in firm and director behavior, testing whether director-specific litigation risk affects firm value, board composition, director compensation, and insider trading.

Does Litigation Encourage or Deter Real Earnings Management? empirically examines the relation between litigation risk and Real Earnings Management — boosting near-term profits through management choices that detract from long-term value — suggesting that litigation constrains REM by providing recourse to shareholders when governance, incentive mechanisms, and other sources of monitoring fail.