Three essays on shareholder litigation

In an environment where the shareholder litigation rights are assumed to be an increasingly important aspect of corporate governance, we show three reasons why too much of litigation is harmful for organizations. Using firm level Exclusive Forum Provisions adoptions in the US as a proxy for litigation, we show that multi-forum litigation is harmful for organizations. Reduction of such multi-forum litigation using EFP helps firms to lower investment inefficiencies, fraud risks and improve corporate governance evidenced via increased flow of institutional investments.