Photo of Ian Appel

Ian Appel

I will be available for interviews at the 2015 ASSA annual meeting.

 

 
Contact Information
 
Cell: (410) 916-5763
Address: 2300 Steinberg-Dietrich Hall, 3620 Locust Walk, Philadelphia, PA 19104
 
 
 
Research Interests
 
Empirical Corporate Finance, Law and Finance, Institutional Investors
 
 
 

Job Market Paper

Governance by Litigation

I show shareholder litigation rights are an important tool for mitigating agency conflicts. To empirically identify the effects of litigation, I use the staggered adoption of universal demand (UD) laws in 23 states between 1989 and 2005. These laws create a significant obstacle to lawsuits against directors and officers for breach of fiduciary duty. UD laws are associated with increased use of governance provisions (e.g., classified boards) that entrench managers or otherwise limit shareholder voice. I also document fewer institutional blockholders, changes to financial policies and CEO compensation, and lower accounting performance for firms subject to UD. Overall, my findings cast doubt on the traditional notion that shareholder lawsuits primarily benefit attorneys rather than corporations or their shareholders.  

 
 
References
 
Todd A. Gormley (co-chair)                                       Michael R. Roberts (co-chair)
Assistant Professor of Finance                                 William H. Lawrence Professor of Finance
The Wharton School                                                   The Wharton School
University of Pennsylvania                                        University of Pennsylvania
Phone: (215) 746-0496                                              Phone: (215) 573-9780          
Email: tgormley@wharton.upenn.edu                     Email: mrrobert@wharton.upenn.edu
 
Donald B. Keim
John B. Neff Professor of Finance
The Wharton School
University of Pennsylvania
Phone: (215) 898-7685