摘要:Since Capital market act 1995, Badan Pengawas Pasar modal (BAPEPAM) have stronger role and function to control capital market mechanism in Indonesia. One of its consecuences are litigation risk of the firm. This research is focused on manager attitude in respond to litigation risk of firm. The attidute will affect on typology of strategy that is used to manage firm. The result show that litigation risk of firms are variated. This variation is affected by market risk, debt risk, political risk. Result also show that are variation on typology of strategy. There are two category of strategy, prospector and defender. The determinat of the typology are total sales, marekt value to book value, capital expenditure to market value of equity, capital expenditure to assets. The pattern of relationship between typology stretegy and litigation risk are positive. That mean, more high litigation risk the firm tends to use defender strategy. So that firm have preference to use defense strategy to avoid litigation risk.
关键词:Key word : litigation risk, typology of strategy