Valuation of new trademarks

Po-Hsuan Hsu, Dongmei Li, Qin Li, Siew Hong Teoh, Kevin Tseng

Research output: Journal article publicationJournal articleAcademic researchpeer-review

Abstract

Firms often register trademarks as they launch new products or services. We find that the number of new trademark registrations positively predicts firm profitability, stock returns, and underreaction by analysts in their earnings forecasts. Using the Federal Trademark Dilution Act (FTDA) as an exogenous shock to trademark protection, we find that greater trademark protection strengthens the predictability of new trademark registrations. Together, our evidence suggests that investors undervalue new trademark registrations.
Original languageEnglish
Pages (from-to)257-279
JournalManagement Science
Volume68
Issue number1
DOIs
Publication statusPublished - Jan 2022

Keywords

  • Innovation
  • Trademarks
  • Exploratory Trademarks
  • Stock Returns
  • Limited Attention
  • Uncertainty
  • Market Efficiency
  • Analyst Forecast
  • Anomalies
  • Trading Strategies

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