We are glad to welcome you to MSM MBA Finance Academic Research Seminar to discuss about a recent study "Shareholder Litigation Rights and Capital Structure" (Nguyen, N., & Phan, H. V., 2018), with Assoc. Prof. Dr. Phan Van Hieu, Faculty of University of Massachusetts, USA.
Abstract of study
We exploit the staggered adoption of the universal demand (UD) laws across U.S. states, which impedes shareholder rights to initiate derivative lawsuits, as a quasi-natural experiment, to examine the relation between shareholder litigation rights and firm capital structures. We find that weaker shareholder litigation rights due to the UD laws adoption lead to higher financial leverage. Furthermore, the positive relation between the UD laws adoption and financial leverage is more pronounced for financially constrained firms or firms exposed to higher shareholder litigation risk ex ante. Our evidence is consistent with lower shareholder litigation threats motivating firms to increase financial leverage.
Beside discussing the paper, following topics will also be addressed:
⇒ Agency problems and information asymmetry topics, which are some of the key drivers of corporate finance decisions;
⇒ Econometric issues related to endogeneity;
⇒ Q&A on preliminary research ideas of MBA theses.
Assoc. Prof. Dr. Phan Van Hieu
University of Massachusetts, USA - Department of Finance.
Assoc. Prof. Dr. Phan Van Hieu is an associate professor of Finance at University of Massachusetts Lowell, USA. He got a MBA and a PhD in Finance from University of Connecticut, Storrs, CT. He has many publications and presentations relating to Finance, Corporate Governance, Mergers and Acquisitions, etc...
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MSM MBA Seminar
Impacts of Regulations on Corporate Financial Policies
18:00 - 21:00 July 10, 2019 | MSM MBA Program, Room 315, Building A4, HCMC University of Technology
268 Ly Thuong Kiet, Dist. 10, HCMC