Legal Environment Changes and Firm Value: Evidence From the 1999 SGI Case
DOI:
https://doi.org/10.33423/jabe.v23i1.4067Keywords:
business, economics, litigation risk, financial health, firm value, financial informationAbstract
The 1999 Silicon Graphics International (SGI) case reduced litigation risks and allowed for discretion in financial statements, resulting in a decrease in the expected losses associated with litigation. In this paper, we explore this new legislative environment and examine the pathways underlying the impact of changes to the legal environment on firm value. Accordingly, this study visualizes how these changes can enhance the value of a firm. In addition, this paper reveals how managers react to the legal changes in financial reporting practices.
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Published
2021-04-23
How to Cite
Gil, J., Kim, Y., & Lim, J. (2021). Legal Environment Changes and Firm Value: Evidence From the 1999 SGI Case. Journal of Applied Business and Economics, 23(1). https://doi.org/10.33423/jabe.v23i1.4067
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