Academy of Management Perspectives
This research brief summarizes a study on how markets react to settlements and judgments. Prior research suggests that when companies refuse to settle and instead take on litigation, they are rewarded by markets even when they lose the case. Why this occurs has tremendously important significance for senior management.
Academy of Management
Lau, Terence, "Management and Market Reactions to Litigation: Do Shareholders Win When the Company Loses?" (2006). Management and Marketing Faculty Publications. 7.