We study the causal effect of patent quality on firm value in a unique setting of patent examiner busyness which can negatively affect patent quality. This setting mitigates endogeneity concerns as patent examiner busyness is unlikely related to firm fundamentals. We first document that patents...

In the 1980s, stock exchanges and eventually the SEC took actions that affected the eligibility of listed firms to adopt dual-class shares with differential voting rights. We find that risk-adjusted stock returns increase (decrease) in reaction to regulatory events that decrease (increase) the...