We examine the effect of investor attention on value loss due to securities class action lawsuits and litigation-based fraud discovery. We find that investor attention is positively associated with damage to corporate reputation and the magnitude of the value losses suffered by defendant firms. The reputational damage to defendant firms with higher investor attention is evident from poor operational performance and lower institutional ownership after filing. Investor attention is positively associated with the diffusion of information regarding fraud and it accelerates lawsuit filing. The effects of investor attention, however, are not subsumed by the severity of the fraud. Our results are robust to a battery of tests that addresses selection and endogeneity concerns.

中文翻译：

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证券集体诉讼中投资者注意力对欺诈发现和价值损失的影响

我们研究了投资者注意力对证券集体诉讼和基于诉讼的欺诈发现造成的价值损失的影响。我们发现投资者的注意力与公司声誉的损害和被告公司遭受的价值损失的幅度呈正相关。投资者关注度较高的被告公司的声誉受损从提交后较差的运营业绩和较低的机构所有权中可见一斑。投资者的关注与欺诈信息的传播呈正相关，并加速了诉讼提起。然而，投资者关注的影响并不包含在欺诈的严重性中。我们的结果对于解决选择和内生性问题的一系列测试来说是稳健的。