EconPapers    
Economics at your fingertips  
 

Court Decisions and Equity Markets: Estimating the Value of Copyright Protection

Matthew Baker () and Brendan Cunningham ()

Journal of Law and Economics, 2006, vol. 49, issue 2, 567-96

Abstract: We construct a database of U.S. federal court decisions pertaining to copyright and changes in federal statutory copyright law and use this database to assemble indices measuring changes in the breadth of copyright protection. We combine our indices with information on excess returns to equity from a quarterly panel of firms and estimate how the breadth of copyright affects the market valuation of firm equity. A typical statute that increases copyright breadth generates an increase in a firm's excess return to equity of 40-209 basis points, depending on the exact time frame, the size of the firm, and the importance of the change in statutory law. A typical high-court decision expanding copyright generates a 13-105 basis-point increase in excess returns. Our results are robust across 4-5-year subsamples and the size distribution of firms. Our statutory findings are strongest in the most recent portion of the sample.

Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link)
http://dx.doi.org/10.1086/505372 (application/pdf)
Access to the online full text or PDF requires a subscription.

Related works:
Working Paper: Court Decisions and Equity Markets: Estimating the Value of Copyright Protection (2004) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ucp:jlawec:y:2006:v:49:i:2:p:567-96

Access Statistics for this article

More articles in Journal of Law and Economics from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().

 
Page updated 2019-04-15
Handle: RePEc:ucp:jlawec:y:2006:v:49:i:2:p:567-96