Finally, the present study has some limitations. One limitation of this study is that
in constructing the sample, some meritorious lawsuits that may have resulted in
monetary penalty but were dismissed for procedural reasons were excluded. Another
limitation is that the CEO turnover data did not provide sufficient information about
the reason for the termination of the CEOs; therefore, it was not possible to determine
that the board’s decision to end the employment of a CEO was directly related to the
securities lawsuit.