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Investigating shareholders' authority to register derivative litigation and the risk of stock price falls in the US stock market and the position of derivative litigation in the Iranian capital market
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Mousa Bahrieh *   , Ali Lalbar |
| Islamic Azad University, Arak Branch, Arak, Iran |
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Abstract: (267 Views) |
| Due to the increasing expansion of the capital market among the people and the lack of sufficient knowledge and awareness of the majority of people about the structure and rules of the capital market at the time of violation or dispute between managers and shareholders of companies operating in the capital market causes confusion and discouragement of shareholders. Becomes. In the meantime, the derivative lawsuit has made it possible for the shareholder (s) to sue in the name and on behalf of the company against the director (s) and the managing director who have caused damage to the company by their unusual actions. In this regard, the question that arises is whether reducing ambiguity in reporting the situation of the company, hiding bad news in the context of earnings management measures, is a way to reduce the risk of stock falls or not? In this article, we examine the impact of the risk of prosecution by shareholders on the risk of falling stock prices of companies in US and Iranian lawsuits in the stock market. The results show that reducing the risk of derivative litigation reduces the risk of stock collapse. Concealment of bad news, in the context of profit management measures, is one of the channels through which the risk of litigation affects the risk of falling stock prices. |
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| Keywords: Risk of litigation, Derivative litigation, Risk of stock price fall, Group litigation against securities, Group litigation |
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Full-Text [PDF 496 kb]
(80 Downloads)
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Type of Study: case report |
Subject:
Special
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