Legal Expertise and the Role of Litigation Risk in Firms’ Conservatism Choices

2021 ◽  
Author(s):  
Jonathan Black ◽  
Charles Ham ◽  
Michael D. Kimbrough ◽  
Ha Yoon Yee
Keyword(s):  
Litigation Risk ◽  
Legal Expertise

Legal Expertise and the Role of Litigation Risk in Firms' Conservatism Choices

2021 ◽  
Author(s):  
Jonathan Black ◽  
Charles G. Ham ◽  
Michael D. Kimbrough ◽  
Ha Yoon Yee
Keyword(s):  
Senior Management ◽  
General Counsel ◽  
Litigation Risk ◽  
Legal Environment ◽  
Ninth Circuit ◽  
Legal Risks ◽  
Legal Costs ◽  
Net Assets ◽  
Legal Expertise

Firms face a greater risk of lawsuits for overstated rather than understated earnings or net assets, suggesting conservatism can reduce firms' expected legal costs. Because managers with legal expertise are more likely than other managers to recognize the legal benefits of conservatism, this study examines whether legal expertise among members of senior management promotes greater conservatism. Consistent with this prediction, we find that firms with a general counsel (GC) in senior management (our proxy for legal expertise) report more conservatively. We also find that GC firms recalibrate their conservatism levels in response to changes in the legal environment-their conservatism choices are more responsive to litigation against peer firms and to two judicial rulings that affected the litigation risk for firms located in the Ninth Circuit. Overall, our findings suggest that populating senior management with legal experts affects the extent to which a firm's level of conservatism incorporates legal risks.

scholarly journals Telaah Literatur Tentang Faktor-Faktor yang Mempengaruhi Konservatisme Akuntansi

2012 ◽  
Vol 8 (2) ◽  
Author(s):  
Lia Alfiah Dinanar Hati
Keyword(s):  
Conflict Of Interest ◽  
Financial Distress ◽  
Accounting Conservatism ◽  
Litigation Risk ◽  
Political Costs

This paper examine several factor that impact to accounting conservatism practice. Conservatism is commonly defined as the differential verifiability required for recognition of profits versus losses. Regardless of the different opinion about role of accounting conservatism, in fact, this principle is still in uses until now and be one of the dominant principle in accounting. Through this article the author do review of several previous studies about accounting conservatism at Indonesia and other country. From several review we conclude that accounting conservatism is affected by factors of contracting, litigation risk, political costs, regulations, financial distress and conflict of interest between shareholders and bondholders.

Could Patient Engagement Promote a Health System Free From Malpractice Litigation Risk?

2018 ◽  
pp. 431-454
Author(s):  
Massimo Miglioretti ◽  
Francesca Mariani ◽  
Luca Vecchio
Keyword(s):  
United States ◽  
Patient Engagement ◽  
Professional Education ◽  
Medical Malpractice ◽  
Large Scale ◽  
Active Role ◽  
The United States ◽  
Litigation Risk ◽  
Malpractice Litigation

In recent decades, medical malpractice litigation experienced a large-scale expansion in the United States as well as in Europe, involving both medical and surgical specialties. Previous studies have investigated the reasons why patients decide to sue doctors for malpractice and highlighted that adverse outcome, negative communication with doctors and seeking compensation are among the major reasons for malpractice litigation. In this chapter, patient engagement is discussed as a possible method for reducing the risks of doctors being sued for medical malpractice. The results of a first qualitative study underline how an active role for patients and their engagement in the treatment definition and execution could be a way to limit the occurrence of malpractice litigations. However, a second study noted that in Italy, many patients are still struggling to become involved in the process of their care. The authors discuss the role of professional education in promoting patient engagement in Italy.

Arbitrator acceptability in international commercial arbitration

2016 ◽  
Vol 27 (3) ◽  
pp. 379-397 ◽  
Author(s):  
Yongkyun Chung ◽  
Hong-Youl Ha
Keyword(s):  
Reliability And Validity ◽  
Commercial Arbitration ◽  
Content Type ◽  
International Commercial Arbitration ◽  
Analytic Process ◽  
Selection Research ◽  
The Relationship ◽  
Legal Expertise ◽  
Perceived Costs

Purpose The purpose of this paper is to identify the determinants of arbitrator acceptability and investigate whether the perceived costs of arbitration moderate the relationship between arbitrator acceptability and arbitrator characteristics in international commercial arbitration. Design/methodology/approach A two-stage analytic process is used to test the dimensionality, reliability and validity of each construct and then the proposed hypotheses. Findings The findings show that the five constructs of arbitrator characteristics – reputation, practical expertise, legal expertise, experience and procedural justice – statistically significantly explain arbitrator acceptability. Moreover, perceived cost of arbitration moderates the relationship between arbitrator acceptability and arbitrator characteristics. However, the moderating effect of perceived costs of arbitration is not equal across characteristics. Research limitations/implications Knowledge regarding potential moderators of the strength of the indicators of arbitrator acceptability will be useful to future researchers in determining which variables to study in arbitrator selection research. Practical implications Useful guidelines in the selection of an international arbitrator are proposed. Originality/value This study contributes to arbitrator acceptability literature through the suggestion of a hypothesized model of arbitrator acceptability with auxiliary hypothesis of reputation in international contexts. In addition, this study investigates the moderating role of perceived cost of arbitration on the relationship between arbitrator acceptability and arbitrator characteristics.

Agents of Change or Unchanging Agents? The Role of Lawyers within Russian Industrial Enterprises

2001 ◽  
Vol 26 (03) ◽  
pp. 685-715 ◽  
Author(s):  
Kathryn Hendley ◽  
Peter Murrell ◽  
Randi Ryterman
Keyword(s):  
Professional Identity ◽  
Labor Relations ◽  
Short Supply ◽  
Securities Law ◽  
Industrial Enterprises ◽  
Agents Of Change ◽  
Routine Tasks ◽  
Market Capitalism ◽  
Legal Expertise

The transition from state socialism toward market capitalism has led to an almost endless supply of new laws and legal institutions. Industrial enterprises need to adapt to this new institutional regime. In-house lawyers are well placed to be agents of change in facilitating this adjustment. Using survey data from 328 Russian enterprises, the article examines the role of company lawyers, asking whether they have fulfilled this potential. Legal expertise is not in short supply, but lawyers are marginalized within the enterprise. They focus on established, routine tasks, such as handling labor relations or drafting form contracts, rather than on shaping enterprise strategies in the newer areas created by the transition, such as corporate governance or securities law. The failure of in-house lawyers to emerge as agents of change in Russia reflects a continuation of their low status during the Soviet era and the lack of professional identity among these company lawyers.

scholarly journals COMMUNICATIVE ROLE OF A JUDGE: STRATEGIES AND TACTICS OF SPEECH BEHAVIOR IN JUDICIAL DISCOURSE

2020 ◽  
Vol 25 (2(22)) ◽  
pp. 7-15
Author(s):  
Aliona Bakhchyvanzhy
Keyword(s):  
Legal Discourse ◽  
Scientific Concepts ◽  
Short Term ◽  
Speech Genres ◽  
Judicial Discourse ◽  
Legal Expertise ◽  
Communicative Role ◽  
Behavior Characteristic

The article is devoted to the review of scientific concepts of judicial discourse as a kind of legal discourse, analyzes the main communicative roles of a judge in judicial discourse, clarifies the main strategies and tactics of speech behavior characteristic of the communicative role of a judge in judicial discourse. The concept of communicative role is thoroughly characterized by such a scientist as J. Sternin, who divides the communicative role into standard and initiative, and initiative, in turn, is also divided into two groups: short-term (short-term, situational) and long-term (long-term). The main views of modern linguists on the problem of defining judicial discourse are reviewed, in particular, the linguistic aspects of communication in court are thoroughlypresented. The degree of research of the problem in linguistics on studying the problems of legal discourse is analyzed, for example the works of such scientists as N. V. Artykutsa, S. V. Dordy, Yu. F. Pradid, O. L. Dotsenko, O. O. Kobzeva are presented.The focus is on the problem of legal terminology, various aspects of the language of legislation, linguistic issues of legal expertise and features of speech genres of legal discourse.

Confronting Cyber Risk

2021 ◽  
Author(s):  
Gregory J. Falco ◽  
Eric Rosenbach
Keyword(s):  
Professional Experience ◽  
Litigation Risk ◽  
Incident Response ◽  
New Strategy ◽  
Digital Asset ◽  
Micro Level ◽  
Potential Impact ◽  
Cyber Risk ◽  
Digital Assets

Confronting Cyber Risk: An Embedded Endurance Strategy for Cybersecurity is a practical leadership handbook defining a new strategy for improving cybersecurity and mitigating cyber risk. Written by two leading experts with extensive professional experience in cybersecurity, the book provides CEOs and cyber newcomers alike with novel, concrete guidance on how to implement a cutting-edge strategy to mitigate an organization’s overall risk to malicious cyberattacks. Using short, real-world case studies, the book highlights the need to address attack prevention and the resilience of each digital asset while also accounting for an incident’s potential impact on overall operations. In a world of hackers, artificial intelligence, and persistent ransomware attacks, the Embedded Endurance strategy embraces the reality of interdependent digital assets and provides an approach that addresses cyber risk at both the micro level (people, networks, systems and data) and the macro level (the organization). Most books about cybersecurity focus entirely on technology; the Embedded Endurance strategy recognizes the need for sophisticated thinking about hardware and software while also extending beyond to address operational, reputational and litigation risk. This book both provides the reader with a solid grounding in important prevention-focused technologies—such as cloud-based security and intrusion detection—and emphasizes the important role of incident response. By implementing an Embedded Endurance strategy, you can guide your team to blunt major cyber incidents with preventative and resilience measures engaged systematically across your organization.

Concept And Purposes Of Conducting Scientific-Legal Expertise Of Draft Laws

2021 ◽  
Vol 03 (07) ◽  
pp. 19-26
Author(s):  
Toirkhon Abboskhonov Khasan Ugli ◽  
Keyword(s):  
The Republic ◽  
Legal Expertise

The article researches into the concept of scientific-legal expertise of draft laws, its goals and classification, as well as the role of expertise within the activity of the Chambers of the Oliy Majlis of the Republic of Uzbekistan. Also, there have been developed theoretical proposals aimed at revealing the essence and significance of scientific-legal expertise of draft laws, as well as its application in practice

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