Knocking off Firm Value

68 Pages Posted: 29 Aug 2018 Last revised: 12 Aug 2020

See all articles by Mehmet Canayaz

Mehmet Canayaz

Pennsylvania State University - Smeal College of Business

Umit Gurun

University of Texas at Dallas

Date Written: August 12, 2020


We study the valuation implications of one of the most important mechanisms that help firms protect their intangible assets from infringement: government anti-counterfeiting enforcement. We show that the U.S. government’s anti-counterfeiting enforcement in foreign countries positively affects U.S. firms’ intangible assets, earnings, and valuations. Firms significantly reduce capital and research and development investments when their brands and products are protected from counterfeiting activities. Our results demonstrate the importance of the U.S. government’s anti-counterfeiting enforcements on intangible assets and valuations.

Keywords: Intangible asset valuation, enforcement, research and development investment, capital investment, product market competition, counterfeit products, special 301 reports

JEL Classification: G15, G34, G31, M41

Suggested Citation

Canayaz, Mehmet and Gurun, Umit, Knocking off Firm Value (August 12, 2020). Available at SSRN: or

Mehmet Canayaz (Contact Author)

Pennsylvania State University - Smeal College of Business ( email )

University Park, PA 16802
United States

Umit Gurun

University of Texas at Dallas ( email )

2601 North Floyd Road
Richardson, TX 75083
United States


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