August 6, 2025Open Access

The Private Ordering Solution to Multiforum Shareholder Litigation

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Analysis reveals exclusive forum provisions enhance corporate governance in Delaware corporations, suggesting limited managerial opportunism.

Nearly all new Delaware corporations adopt exclusive forum provisions at the IPO stage.
The growth of these provisions is driven primarily by law firms, indicating a standardization effect.
Post-IPO analysis shows no significant governance differences between adopting and nonadopting firms.
Adoption method of exclusive forum provisions does not significantly affect investor concerns, simplifying decisions.

Romano et al. (2025) studied this question.

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Analysis reveals exclusive forum provisions enhance corporate governance in Delaware corporations, suggesting limited managerial opportunism.