Trade Secret Protection and Firm Acquisitions: Evidence from the Uniform Trade Secrets Act

Marta Fernandez De Arroyabe Arranz; Christoph Grimpe; Katrin Hussinger

doi:10.5465/AMBPP.2022.13850abstract

Trade Secret Protection and Firm Acquisitions: Evidence from the Uniform Trade Secrets Act

Marta Fernandez De Arroyabe Arranz, Christoph Grimpe, Katrin Hussinger

Institut for Strategi og Innovation

Publikation: Bidrag til bog/antologi/rapport › Konferenceabstrakt i proceedings › Forskning › peer review

Abstract

Strategic factor markets allow firms to access knowledge and technology, yet their institutional underpinnings and the effect of changes in the institutional framework on firm behavior are poorly understood. We address a change in institutions regarding the strength of trade secret protection, more specifically the staggered implementation of the Uniform Trade Secrets Act (UTSA) in the U.S. We show that stronger trade secret protection increases the likelihood of firms to engage on the market for corporate control, a consequence unintended by the UTSA. We identify two mechanisms. First, the UTSA limits knowledge outflows through employee mobility which makes knowledge-intensive firms more attractive acquisition targets. Second, stronger trade secret protection grants acquiring firms better protection of the acquired knowledge and technology

Originalsprog	Engelsk
Titel	Proceedings of the Eighty-second Annual Meeting of the Academy of Management
Redaktører	Sonja Taneja
Antal sider	1
Udgivelsessted	Briarcliff Manor, NY
Forlag	Academy of Management
Publikationsdato	2022
Sider	1939
DOI	https://doi.org/10.5465/AMBPP.2022.13850abstract
Status	Udgivet - 2022
Begivenhed	The Academy of Management Annual Meeting 2022: Creating a Better World Together - Seattle, USA Varighed: 5 aug. 2022 → 9 aug. 2022 Konferencens nummer: 82 https://2022.aom.org/

Konference

Konference	The Academy of Management Annual Meeting 2022
Nummer	82
Land/Område	USA
By	Seattle
Periode	05/08/2022 → 09/08/2022
Internetadresse	https://2022.aom.org/

Navn	Academy of Management Proceedings
ISSN	0065-0668

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Citationsformater

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title = "Trade Secret Protection and Firm Acquisitions: Evidence from the Uniform Trade Secrets Act",

abstract = "Strategic factor markets allow firms to access knowledge and technology, yet their institutional underpinnings and the effect of changes in the institutional framework on firm behavior are poorly understood. We address a change in institutions regarding the strength of trade secret protection, more specifically the staggered implementation of the Uniform Trade Secrets Act (UTSA) in the U.S. We show that stronger trade secret protection increases the likelihood of firms to engage on the market for corporate control, a consequence unintended by the UTSA. We identify two mechanisms. First, the UTSA limits knowledge outflows through employee mobility which makes knowledge-intensive firms more attractive acquisition targets. Second, stronger trade secret protection grants acquiring firms better protection of the acquired knowledge and technology",

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address = "United States",

note = "The Academy of Management Annual Meeting 2022 : Creating a Better World Together, AoM 2022 ; Conference date: 05-08-2022 Through 09-08-2022",

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Arroyabe Arranz, MFD, Grimpe, C & Hussinger, K 2022, Trade Secret Protection and Firm Acquisitions: Evidence from the Uniform Trade Secrets Act. i S Taneja (red.), Proceedings of the Eighty-second Annual Meeting of the Academy of Management. Academy of Management, Briarcliff Manor, NY , Academy of Management Proceedings, s. 1939, The Academy of Management Annual Meeting 2022, Seattle, Washington, USA, 05/08/2022. https://doi.org/10.5465/AMBPP.2022.13850abstract

Trade Secret Protection and Firm Acquisitions: Evidence from the Uniform Trade Secrets Act. / Arroyabe Arranz, Marta Fernandez De; Grimpe, Christoph; Hussinger, Katrin.
Proceedings of the Eighty-second Annual Meeting of the Academy of Management. red. / Sonja Taneja. Briarcliff Manor, NY : Academy of Management, 2022. s. 1939 (Academy of Management Proceedings).

Publikation: Bidrag til bog/antologi/rapport › Konferenceabstrakt i proceedings › Forskning › peer review

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