Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
10520278 | Journal of Business Venturing | 2016 | 18 Pages |
Abstract
This study investigates how the inevitable disclosure doctrine, a form of trade secret legal protection, affects venture capital (VC) investment. Using a data set of VC deals realized in the United States from 1980 to 2012, we find that a rule in favor of inevitable disclosure increases the amount of VC investment. We address mechanisms that can explain these findings by assessing how the inevitable disclosure doctrine (a) displays a different impact on VC investments according to the characteristics of the state and the industry where the start-ups operate and (b) affects the performance of VC-backed firms. We also discuss managerial and policy implications of our findings.
Keywords
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Francesco Castellaneta, Raffaele Conti, Francisco M. Veloso, Carlos A. Kemeny,