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Abstracts prior to volume 5(1) have been archived!

Issue 5(1), October 2010 -- Paper Abstracts
Girard  (p. 9-22)
Cooper (p. 23-32)
Kunz-Osborne (p. 33-41)
Coulmas-Law (p.42-46)
Stasio (p. 47-56)
Albert-Valette-Florence (p.57-63)
Zhang-Rauch (p. 64-70)
Alam-Yasin (p. 71-78)
Mattare-Monahan-Shah (p. 79-94)
Nonis-Hudson-Hunt (p. 95-106) 



JOURNAL OF APPLIED BUSINESS AND ECONOMICS


Economic Outcomes of Corporate Espionage



Author(s): Chengcheng Li, Yi Liu, Xiaoqiong Wang

Citation: Chengcheng Li, Yi Liu, Xiaoqiong Wang, (2020) "Economic Outcomes of Corporate Espionage," Journal of Applied Business and Economics, Vol. 22, Iss.3,  pp. 139-149

Article Type: Research paper

Publisher: North American Business Press

​Abstract:

This paper investigates the economic outcomes of corporate espionage (also known as trade secrets) lawsuits. Utilizing 137 hand-collected trade secret cases, we find significantly positive (negative) abnormal returns for the favorable (unfavorable) court decisions up to 5 days around the court decision dates. Our findings are consistent with two hypotheses: information leaking before the event and investor overreaction/underreaction on and after the event days. Our analysis on firm fundamentals show that the consequences of losing trade secret lawsuits are long-lasting. The findings indicate that the punishment incorporated by the market is more severe for the losing firms.