Date: 4 February 2026, Wednesday
Time: 10.30 – 11.30
Place: MA-330
“The Pricing and Economic Impact of Legal Risk“
by
Dean Ryu
Saïd Business School – Oxford
Abstract
Legal risk is an inherent feature of markets, rooted in the institutions that enable economic activity, yet it remains difficult to measure across firms. This paper constructs a text-based measure of firm-level legal risk (LRISK) using earnings call transcripts. LRISK predicts class action lawsuits and spikes during periods of heightened legal incidents. A one standard deviation increase predicts a 3–7% decline in future investment and lowers firms’ reliance on debt, consistent with precautionary motives. Legal risk is positively priced, particularly after 2010, and varies across legal origins, reflecting institutional differences.
Bio
Dean Ryu is a Finance Ph.D. Candidate at Said Business School, University of Oxford. His research aims to understand asset pricing phenomena through the lens of related economics and finance fields, such as political economy, law and economics/finance, market sentiment, and machine learning / AI.