Litigation Risk and Commercial Credit

DOI

10.2991/aebmr.k.191217.170How to use a DOI?

Keywords

market competition, stock collapse, corporate governance

Abstract

This paper takes the Shanghai and Shenzhen A-share listed companies from 2005 to 2015 as a sample to study the impact of litigation risk on the company’s commercial credit. The study found that: (1) Compared with listed companies that do not have litigation risks (or higher litigation risks), the commercial credit of listed companies with litigation risks (or higher litigation risks) has been significantly affected, and the obtained commercial credits Significantly reduced,and the higher the frequency of litigation is, the greater the amount of litigation is, the greater the negative impact; (2) This effect is more pronounced in the case of off-site litigation, non-state-owned enterprises, poor legal protection and strong market competition.The conclusions of this paper are still significant after the endogenous and robustness tests.This paper reveals the influence mechanism of the uncertainty of the external environment on the commercial credit of enterprises, and has certain theoretical and practical significance for the related research of commercial credit.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Zhiqiang Liu
AU  - Wenxuan Han
PY  - 2019
DA  - 2019/12/20
TI  - Litigation Risk and Commercial Credit
BT  - Proceedings of the 2019 International Conference on Economic Management and Cultural Industry (ICEMCI 2019)
PB  - Atlantis Press
SP  - 999
EP  - 1004
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.191217.170
DO  - 10.2991/aebmr.k.191217.170
ID  - Liu2019
ER  -