Courtesy of Prof. Larry Ribstein in a post here, comes an article by Yaniv Grinstein and and Stefano Rossi entitled: Good Monitoring, Bad Monitoring. The article examines the impact on stock returns in light of the Delaware Supreme Court’s 1985 decision imposing liablity on directors in Van Gorkom, and the legislative response in DGCL Section 102(b)(7) that allows corporations to provide more protection for directors. The article is available here. An excerpt from the introduction allows that: “The ruling signaled a sharp and exogenous increase in Delaware Courts’ scrutiny over board decisions. We analyze the impact of the ruling on stock returns…”