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Research_

Shareholder Class Actions: An Effective Corporate Governance Mechanism?

University of Sydney Business School Industry Partnership Grant 2015

Maurice Blackburn Lawyers

Angelo Aspris; Sean Foley; Cary Di Lernia; Jason Geisker (Maurice Blackburn Lawyers)

Business Law; Finance

Project Summary

There have been 14 shareholder class actions against members of the top 200 companies in Australia in the past year, with total settlements in the last 20 years worth more than $1 billion, over $480 million of which was paid out in 2012. Shareholder class actions (SCAs) are providing an increasingly popular avenue of recourse to aggrieved investors who suffer loss as a result of inadequate corporate governance behaviours. This project will analyse the role and development of SCAs as a disciplining mechanism for market participants through an analysis of share price responses, changes in corporate governance and management and other key variables around the initiation and cessation of SCA activity. As part of this project, a comparative analysis of the use of SCAs in other influential jurisdictions including the US and Canada will be undertaken to identify similarities and differences in the use and efficacy of this nascent corporate governance mechanism.

Funding

2015

Total

$30,000 (AUD)

Business School staff

Angelo Aspris
Academic profile
Cary Di Lernia
Academic profile