题目：Shareholder Litigation and Corporate Culture
主讲人：Dr. Cheng Jason Jiang，Temple University
Dr. Cheng Jason Jiang is an associate professor in the Department of Finance at Fox School of Business at Temple University. He also serves as the Director of Quantitative Software Education and Director of Capital Markets Room for Fox School of Business.
We investigate the effect of shareholder litigation risk on corporate culture measured by a novel machine learning approach (Li et al. 2021). We apply a difference-in-difference method by employing the staggered state adoption of Universal Demand (UD) law in the U.S. as an exogenous decline in derivative lawsuit risk. We empirically document that the passage of UD law weakens corporate culture for both the full sample and a matched sample. Moreover, we show that the weakened corporate governance is a channel through which the adoption of UD law undermines corporate culture. In addition, we find that the negative effect of UD law adoption on corporate culture is more pronounced for firms with legal experts among directors or top executives and for firms with riskier litigation outlook. Our findings suggest that the shareholder litigation risk disciplines corporate governance, which in turn affects corporate culture, an important aspect in the modern corporate management.