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1 – 10 of over 5000Peiyuan Huang, Junguang Gao, Wenyuan Cai and Fuzhen Gu
This study aims to use institutional and upper echelons theories to comprehensively investigate the intricate interplay between TMT legal expertise and firms' adaptive strategies…
Abstract
Purpose
This study aims to use institutional and upper echelons theories to comprehensively investigate the intricate interplay between TMT legal expertise and firms' adaptive strategies in legal contexts, notably within emerging economies. It explores how upper echelons experiences shape opportunistic compliance strategies, impacting value and risk perceptions. Drawing on upper echelons theory, the research probes how TMT legal expertise molds firms’ involvement in significant lawsuits, accounting for influential roles. It scrutinizes TMT’s impact on legal strategies, positing that managerial discretion emerges from environmental factors, organizational attributes and executive traits. The study underscores TMT’s internal incentives and external factors’ interplay, molding strategic legal engagement.
Design/methodology/approach
To validate this framework, statistical analysis is performed on data from 2,584 Chinese-listed firms. The data set spans 2010–2015, with 5,713 material lawsuits. Chosen due to reliable institutional-level incentives data from the China Market Index Database, years 2016–2019 are excluded for methodological disparities. Moreover, 2007–2009 is omitted to mitigate the potential financial crisis impact. This study’s 11,272 observations ensure robust empirical exploration, offering insights into the interplay of TMT legal expertise, institutional factors and firms’ legal strategies.
Findings
The study reveals that firms led by executives with legal expertise are more prone to engage in significant lawsuits, indicating strategic use of legal skills. TMT age moderates this, with older teams less likely to engage. TMT tenure’s effect remains unclear due to tenure-risk preference complexity. Institutional factors matter; less legally mature regions reduce managers’ legal risk intention. Results confirm hypotheses and highlight executive human capital’s impact on firms’ legal strategies.
Research limitations/implications
This study acknowledges contributions while highlighting limitations, including the need for detailed distinctions in lawsuit roles and exploration of heterogeneous TMT power dynamics. Further research is proposed for nuanced power dynamics and comprehensive TMT legal background data. The study advances upper echelons theory by introducing TMT legal expertise as a factor influencing strategic lawsuit behavior. It challenges institutional theory by showing the adaptable legal context, beyond fixed constraints. Moderating factors – group risk attitude and external knowledge – deepen understanding of upper echelons’ impact. Enhanced data collection is encouraged to address limitations and refine findings.
Practical implications
This study’s implications extend to managerial practices. Firms should acknowledge the dynamic legal system, using TMT legal expertise for strategic legal challenges. Executives should pragmatically approach regulations. While legal professionals enhance compliance, caution is needed in selecting TMT members with legal expertise due to the risk of misusing it for unnecessary litigation, potentially misaligned with financial performance goals.
Originality/value
This study combines institutional and upper echelons theories to explore TMT legal expertise’s impact on firms’ adaptive strategies in emerging economies. It challenges the idea of a universally constraining legal environment and highlights how TMT legal expertise enhances firms’ management of complex legal risks. The research introduces TMT legal expertise as an influencing factor in strategic lawsuits, revealing nuanced relationships between legal contexts and strategic decisions. The findings enrich upper echelons theory, challenge conventional institutional views and identify moderating factors that deepen the understanding of upper echelons’ influence in legal landscapes.
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The authors study the relationship between CEO overconfidence and litigation risk by examining employee-level lawsuit data. The purpose of this paper is to better understand the…
Abstract
Purpose
The authors study the relationship between CEO overconfidence and litigation risk by examining employee-level lawsuit data. The purpose of this paper is to better understand the executive characteristics that potentially affect the likelihood of employee litigations.
Design/methodology/approach
The authors employ a unique data set of employee lawsuits from the National Labor Relations Board – “Disposition of Unfair Labor Practice Charges” – which includes complaints, litigations and decisions. The data spans the years 2000–2014. The authors employ the option-based CEO overconfidence metric of Malmendier et al. (2011) as the primary explanatory variable.
Findings
The authors find that overconfident CEOs are less likely to be subjected to labor-related litigations. The authors document that firms with overconfident CEOs have fewer lawsuits opened by both labor unions and individuals. The authors then investigate the effect of employee litigations on firm performance to understand why overconfident CEOs are less prominent among lawsuits. The authors show that litigations lower corporate investment and value of capital expenditures for responsible firms, which may limit overconfident CEOs’ ability to invest. Therefore, the results may reveal the fact that overconfident CEOs may prefer to align with the interest of their employees to avoid reduced investment opportunities.
Originality/value
The paper makes three main contributions. First, it provides the first large-sample evidence on CEO overconfidence and labor relations. The authors employ data on firm-level labor litigation that contains both the case reason and case outcome. Second, this paper adds to the growing literature of CEO overconfidence and governance practices in the workplace. Finally, the study highlights the importance of employee treatment and explores the impact of labor lawsuits on firm value.
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This article presents a study of the trademark lawsuits in Singapore involving the Polo/Lauren Company, L.P. (“PRL”) in their attempts to stop various competitors and businesses…
Abstract
Purpose
This article presents a study of the trademark lawsuits in Singapore involving the Polo/Lauren Company, L.P. (“PRL”) in their attempts to stop various competitors and businesses from using the word “polo” and/or a device of a polo player. Hitherto, there has not been any concerted study of these lawsuits that seeks to analyse the legal principles underpinning the case judgements and translate them into actionable marketing insights using both legal and marketing perspectives. Applying both of such perspectives through the domains of trademark law, consumer attitudes towards counterfeiting and marketing perspectives, such as targeting, promotion and pricing strategies, this article will distill practical and managerial implications for marketers in the luxury brand industry.
Design/methodology/approach
An interdisciplinary approach is adopted, using both legal and marketing frameworks to analyse the decisions, reasoning and implications from the PRL trademark lawsuits.
Findings
There are key practical considerations for marketers and luxury brand managers to consider, both at the conception and during the life cycle of the luxury brand, in order to optimise the level of legal protection under the trademark regime. These include the use of invented words and imaginary content in trademarks, exercising a balancing of various considerations in the use of “composite marks”, and the selection of market pricing, promotion and distribution strategies, which are elaborated in the article.
Research limitations/implications
Given the commonality of the subject matter involved in the trademark lawsuits involving PRL (i.e. the use of the word “polo” and/or the device of a polo player), this study has chosen to focus only on these lawsuits in the context of the Singapore market, and based on Singapore's legal framework, to glean thematic and practical insights. Further studies based on other types of businesses, geographical markets and legal frameworks could be explored to form a better basis for the applicability and comparability of the findings.
Originality/value
While there have been case studies and analyses performed on some of the individual PRL trademark lawsuits around the world, this will be the first study to look at the series of Singapore PRL lawsuits in a holistic and interdisciplinary perspective.
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President Bill Clinton has had many opponents and enemies, most of whom come from the political right wing. Clinton supporters contend that these opponents, throughout the Clinton…
Abstract
President Bill Clinton has had many opponents and enemies, most of whom come from the political right wing. Clinton supporters contend that these opponents, throughout the Clinton presidency, systematically have sought to undermine this president with the goal of bringing down his presidency and running him out of office; and that they have sought non‐electoral means to remove him from office, including Travelgate, the death of Deputy White House Counsel Vincent Foster, the Filegate controversy, and the Monica Lewinsky matter. This bibliography identifies these and other means by presenting citations about these individuals and organizations that have opposed Clinton. The bibliography is divided into five sections: General; “The conspiracy stream of conspiracy commerce”, a White House‐produced “report” presenting its view of a right‐wing conspiracy against the Clinton presidency; Funding; Conservative organizations; and Publishing/media. Many of the annotations note the links among these key players.
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The purpose of this paper is to examine the myriad ways record‐keeping can affect the course and outcome of products liability litigation. The examination includes an overview of…
Abstract
The purpose of this paper is to examine the myriad ways record‐keeping can affect the course and outcome of products liability litigation. The examination includes an overview of the civil jury system in the USA, as well as an analysis of the benefits gained from instituting quality concepts and principles regarding the creation, management, storage and protection of quality‐related documents. Frequently the “star witness” in a products liability lawsuit is not a witness at all – it is a document. The written record a company generates plays a critical role in presenting a case to the jury in the event of litigation. With regard to retaining and storing company records, serious legal problems arise when documents are lost, damaged or destroyed without adequate explanation. Accordingly, embracing and implementing quality concepts and principles with regard to record‐keeping provides numerous rewards in the event of litigation.
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This study investigates the relation between lawsuit attributes that support an inference of fraud and the probability and the size of securities lawsuit settlement. A sample of…
Abstract
This study investigates the relation between lawsuit attributes that support an inference of fraud and the probability and the size of securities lawsuit settlement. A sample of 607 securities lawsuits between 1996 and 2006 is used in the analysis of the probability of settlement and a subsample of 261 lawsuit settlements is used in the analysis of the size of settlement. The empirical results indicate a positive association between the probability of a settlement and accounting irregularity, SEC enforcement action and stock offer. Accounting irregularity and SEC enforcement action are also documented to be positively related to the size of the settlement. The results imply that a stock offer supports a strong inference of fraud and the presence of accounting irregularity and SEC enforcement action in a lawsuit filing strengthens the fraud allegation and increases the likelihood of a settlement. The findings also suggest that the stronger the inference of fraud, the greater the size of the settlement. The results of this study add to our understanding of the determinants of securities lawsuit settlement. Studies using securities litigation as a proxy for fraud can use the results of this study to distinguish between fraud-related and nonfraud-related lawsuits.
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Richard A. Posthuma, Gabriela L. Flores, James B. Dworkin and Samuel Pavel
Using an institutional theory perspective (micro and macro), the authors examined employment lawsuits across case type and alternative dispute resolution methods (negotiated…
Abstract
Purpose
Using an institutional theory perspective (micro and macro), the authors examined employment lawsuits across case type and alternative dispute resolution methods (negotiated settlements versus trials and arbitrations).
Design/methodology/approach
The authors examined actual data from US federal court lawsuits (N = 98,020). The data included the type of lawsuit, the dispute resolution method used and the outcome of the lawsuit in terms of the dollar amounts awarded.
Findings
The results show that employers were more likely to win in high social context cases (civil rights) than in other cases (Employment Retirement Income Security Act of 1974, ERISA). In arbitrations, plaintiffs won more frequently and were awarded higher amounts in arbitration than in court trials. In arbitration, plaintiffs received more in high social context cases than in other cases.
Practical implications
The results show that employers lose more often and in larger dollar amounts in arbitration than in litigation. However, if arbitration rulings more closely matched the likely outcomes of trials, subsequent litigation would be less likely to be overturned, and transaction costs would be reduced. If this were the case, the arbitration of employment lawsuits would more closely match the arbitration of contractual grievances under the typical labor relations system, where the arbitrator’s decision is usually final and binding. This could be a better outcome for all stakeholders in the dispute resolution process.
Originality/value
This is the first study of its kind to examine actual workplace conflicts that result in employment-related lawsuits from the perspective of social contextual factors.
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Reviews the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.
Abstract
Purpose
Reviews the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
As the emphasis on equality in the workplace increasingly reverberates around the business world, few self‐respecting organizations will knowingly deploy practices that might be perceived as discriminatory. However, despite honorable intentions, many companies remain blissfully unaware that some of their practices may not be quite what they seem. So how can organizations identify and remedy issues that may at best threaten workplace harmony or at worst leave them facing a lawsuit? They could take a proactive approach, as the University of Westminster has done. Like other public bodies, this UK institution had to comply with requirements of the amended Race Relations Act. The university, though, went much further and widened the scope to examine the impact of its policies, systems and processes not only on ethnic minorities but in other areas too.
Originality/value
Provides strategic insights and practical thinking that have influenced some of the world's leading organizations.
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Punitive damages is a controversial topic in the legal profession and in the field of economics. This chapter explores the economics of punitive damages as they relates to…
Abstract
Punitive damages is a controversial topic in the legal profession and in the field of economics. This chapter explores the economics of punitive damages as they relates to corporate defendants. The economic difference between large corporations and other potential defendants, such as individuals or smaller closely held companies, causes the effects of a punitive award to be different. In some circumstances, these differences raise significant questions as to the appropriateness of punitive damages when imposed on large corporations.
Kenneth J. Novak, Brad W. Smith and James Frank
Shaping and monitoring the behavior of street‐level officers has continued to be a difficult task for police managers, and this task may prove to be more difficult as modern…
Abstract
Shaping and monitoring the behavior of street‐level officers has continued to be a difficult task for police managers, and this task may prove to be more difficult as modern departments increasingly rely on proactive law enforcement for the delivery of police services. A popular method to shape police behavior is holding officers, departments and municipalities civilly liable for street‐level behavior. While it may be assumed fear of civil litigation influences the manner in which the police interact with the public, there is little empirical evidence for this claim; in fact, the frequent use of civil liability claims is poised to have an unanticipated side effect on contemporary policing. Officers may engage in fewer proactive law enforcement activities as a way to insulate them from litigation. This study examines whether experience with and attitudes toward civil liability influence the behavior of police officers, with particular attention on officer propensity to make arrests, use force, conduct searches and initiate encounters with suspects. Multivariate results indicate attitudes toward civil liability are weak and inconsistent predictors of behavior.
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