TY - JOUR
T1 - Fake Products, Real Effects
T2 - Evidence from Special 301 Actions
AU - Canayaz, Mehmet I.
AU - Gurun, Umit G.
N1 - Publisher Copyright:
© The Author(s), 2022. Published by Cambridge University Press on behalf of the Michael G. Foster School of Business, University of Washington.
PY - 2023/8/24
Y1 - 2023/8/24
N2 - We study how the U.S. government's anti-counterfeiting enforcement actions through Special 301 Reports influence U.S. businesses. We show that anti-counterfeiting enforcement in foreign countries improves U.S. firms' sales, profitability, and valuations. Firms significantly reduce capital and research and development investments when their brands and products are protected from counterfeiting activities. Anti-counterfeiting enforcement measures also improve brand asset value, brand profitability, brand inventiveness, market penetration, and customer loyalty.
AB - We study how the U.S. government's anti-counterfeiting enforcement actions through Special 301 Reports influence U.S. businesses. We show that anti-counterfeiting enforcement in foreign countries improves U.S. firms' sales, profitability, and valuations. Firms significantly reduce capital and research and development investments when their brands and products are protected from counterfeiting activities. Anti-counterfeiting enforcement measures also improve brand asset value, brand profitability, brand inventiveness, market penetration, and customer loyalty.
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U2 - 10.1017/S0022109022001387
DO - 10.1017/S0022109022001387
M3 - Article
AN - SCOPUS:85143130182
SN - 0022-1090
VL - 58
SP - 2024
EP - 2063
JO - Journal of Financial and Quantitative Analysis
JF - Journal of Financial and Quantitative Analysis
IS - 5
ER -