The effects of proprietary information on corporate disclosure and transparency: Evidence from trade secrets
By Stephen Glaeser. Journal of Accounting & Economics, 2018
223 citations recorded by the source corpus.
I examine the effects of proprietary information on corporate transparency and voluntary disclosure. To do so, I develop and validate two measures of firms’ reliance on trade secrecy: one based on 10-K disclosures and one based on subsequent litigation outcomes. I complement these measures by using the staggered passage of the Uniform Trade Secrets Act as a shock to trade secrecy. I find that firms that begin to rely more heavily on trade secrecy substitute increased voluntary disclosure of nonproprietary information for decreased disclosure of proprietary information. The total effect of trade secrecy is a decrease in corporate transparency.
Subfields: Accounting, Sociology and Political Science, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/845658b297729b3ab0a0ff5250d151e8359c4812
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Citations in the corpus
- The Effect of Trade Secrets Law on Stock Price Synchronicity: Evidence from the Inevitable Disclosure Doctrine (2020, unknown): “First, our study contributes to the disclosure literature and joins a few other recent studies to add evidence on the proprietary cost of disclosures using the settings of trade-secret protection (Aobdia 2018; Glaeser 2018; Li, Lin, and Zhang 2018).”
- The innovation consequences of mandatory patent disclosures (2020, background): “…other hand, the literature on proprietary costs (e.g., Verrecchia (1983); Anton and Yao (1994); Verrecchia and Weber (2006); Berger and Hann (2007); Glaeser (2018)) would suggest that the costs of disclosing proprietary patent information to others (which we term disclosure “spill-out”) likely…”