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

Department of Strategy and Innovation

Research output: Chapter in Book/Report/Conference proceeding › Conference abstract in proceedings › Research › 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

Original language	English
Title of host publication	Proceedings of the Eighty-second Annual Meeting of the Academy of Management
Editors	Sonja Taneja
Number of pages	1
Place of Publication	Briarcliff Manor, NY
Publisher	Academy of Management
Publication date	2022
Pages	1939
DOIs	https://doi.org/10.5465/AMBPP.2022.13850abstract
Publication status	Published - 2022
Event	The Academy of Management Annual Meeting 2022: Creating a Better World Together - Seattle, United States Duration: 5 Aug 2022 → 9 Aug 2022 Conference number: 82 https://2022.aom.org/

Conference

Conference	The Academy of Management Annual Meeting 2022
Number	82
Country/Territory	United States
City	Seattle
Period	05/08/2022 → 09/08/2022
Internet address	https://2022.aom.org/

Series	Academy of Management Proceedings
ISSN	0065-0668

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Arroyabe Arranz, M. F. D., Grimpe, C., & Hussinger, K. (2022). Trade Secret Protection and Firm Acquisitions: Evidence from the Uniform Trade Secrets Act. In S. Taneja (Ed.), Proceedings of the Eighty-second Annual Meeting of the Academy of Management (pp. 1939). Academy of Management. Academy of Management Proceedings https://doi.org/10.5465/AMBPP.2022.13850abstract

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

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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. in S Taneja (ed.), Proceedings of the Eighty-second Annual Meeting of the Academy of Management. Academy of Management, Briarcliff Manor, NY , Academy of Management Proceedings, pp. 1939, The Academy of Management Annual Meeting 2022, Seattle, Washington, United States, 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. ed. / Sonja Taneja. Briarcliff Manor, NY : Academy of Management, 2022. p. 1939 (Academy of Management Proceedings).

Research output: Chapter in Book/Report/Conference proceeding › Conference abstract in proceedings › Research › peer-review

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Arroyabe Arranz MFD, Grimpe C, Hussinger K. Trade Secret Protection and Firm Acquisitions: Evidence from the Uniform Trade Secrets Act. In Taneja S, editor, Proceedings of the Eighty-second Annual Meeting of the Academy of Management. Briarcliff Manor, NY : Academy of Management. 2022. p. 1939. (Academy of Management Proceedings). doi: 10.5465/AMBPP.2022.13850abstract