We investigate the impact of trade secrets protection on firm value in the context of the market for corporate control. We propose that a stronger protection of trade secrets, by limiting outflows of trade-secret-related information to both competitors and potential buyers, might have two...

We investigate the impact of trade secret legal protection on firm value in the context of acquisitions. On one hand, market value may increase because trade secret assets become better protected from rivals. On the other hand, market value may decrease because trade secret protection reduces...