Surprise! Most Blockbuster Jury Awards Are Ignored By The Stock Market
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Michael Palmer
Utilizing a master list produced by Viscusi (2004) of what he called “blockbuster” jury awards–those amounting to $100 million or more,–we selected 17 cases where the defendant had traded shares (we excluded the tobacco cases) to see the stock market reaction to these announced awards. Utilizing event study methodologies similar to those used by Prince and Rubin (2002), and looking at both case filing and award date data, we generally found trivial stock market effects for 11 of the 17 companies, despite the size of the awards. In those cases where there was a stock market response, it occurred with firms whose total award to market capitalization ratio was in excess of 9%. Apparently the awards, which on their face value seem large, are not always that important when one considers the much larger market capitalization and the fact that these very large, prominent defendant firms are under almost constant litigation, with the blockbuster being only one of many cases facing the firm.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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- Surprise! Most Blockbuster Jury Awards Are Ignored By The Stock Market
- Garden Leave vs. Covenants Not to Compete
- On Avoidance Activities After Accidents
- Disregarding the Attorney's Advice: An Agency Perspective
- The Efficiency of Comparative Causation
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Artikel in diesem Heft
- Article
- Surprise! Most Blockbuster Jury Awards Are Ignored By The Stock Market
- Garden Leave vs. Covenants Not to Compete
- On Avoidance Activities After Accidents
- Disregarding the Attorney's Advice: An Agency Perspective
- The Efficiency of Comparative Causation
- Does Limited Liability Matter? Evidence From Nineteenth-Century British Banking
- Conviction, Partial Adverse Selection and Labor Market Discrimination
- Criminal Associations with Bargaining and Build Frictions
