Authors:

  • Francois Brochet
  • Suraj Srinivasan

Excerpt

Accountability of Independent Directors - Evidence From Firms Subject to Securities Litigation. Francois Brochet, Suraj Srinivasan, June 2013, Paper. "We examine which independent directors are held accountable when investors sue firms for financial and disclosure related fraud. Investors can name independent directors as defendants in lawsuits, and they can vote against their re-election to express displeasure over the directors’ ineffectiveness at monitoring managers. In a sample of securities class-action lawsuits from 1996 to 2010, about 11% of independent directors are named as defendants..." Link verified March 28, 2014