Abstract
Based on a sample of Chinese listed companies from 2007 to 2022, this paper examines whether corporate accolades are associated with a lower incidence of litigation. By holding earnings and other determinants of litigation, we find that obtaining and disclosing awards can reduce information asymmetry and improve corporate reputation, thereby reducing the litigation risk of firms. Our results still hold after a series of robustness tests. Further analysis finds that the mitigation effect of awards is more pronounced in operation disputes and debt disputes.
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