Powered by OpenAIRE graph
Found an issue? Give us feedback
SSRN Electronic Jour...arrow_drop_down
SSRN Electronic Journal
Article . 2018 . Peer-reviewed
Data sources: Crossref
Management Science
Article . 2024 . Peer-reviewed
Data sources: Crossref
DBLP
Article . 2024
Data sources: DBLP
versions View all 3 versions
addClaim

Buying the Verdict

Authors: Lauren Cohen; Umit G. Gurun;

Buying the Verdict

Abstract

We document evidence that firms systematically increase specialized, locally targeted advertising following the firm being taken to trial in that given location, precisely following initiation of the suit. In particular, we use legal actions brought against publicly traded firms over the 20-year sample period that progress to trial between 1995 and 2014. In terms of magnitude, the increase is sizable: targeted local advertising increases by 23% (t = 4.37) following the suit. They focus their advertisement spikes specifically toward jury trials, and in fact specifically toward the most likely jury pool. Last, we document that these advertising spikes are associated with verdicts, increasing the probability of a favorable outcome. This paper was accepted by Tomasz Piskorski, finance. Funding: We gratefully acknowledge funding from the National Science Foundation [Grant SciSIP-1535813]. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2023.4896 .

  • BIP!
    Impact byBIP!
    selected citations
    These citations are derived from selected sources.
    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    3
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Average
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    Average
    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Average
Powered by OpenAIRE graph
Found an issue? Give us feedback
selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
3
Average
Average
Average
Upload OA version
Are you the author of this publication? Upload your Open Access version to Zenodo!
It’s fast and easy, just two clicks!