Trademarks; Trademark breadth; Real options theory; IPO; Buy-and-hold returns; Signaling theory
Abstract :
[en] Trademarks differ in breadth and can cover a wide range of categories of goods and services. We draw on real options theory and argue that greater trademark breadth constitutes a valuable real option that is associated with higher firm valuation and performance. We analyze a sample of 1510 firms that went public in Europe between 2002 and 2015 and find a positive effect of trademark breadth on initial public offering (IPO) valuation and post-IPO performance. We implement a contingency analysis to contrast real options and signaling theory and find stronger support for the real options perspective.
Disciplines :
Strategy & innovation
Author, co-author :
Fisch, Christian ; University of Luxembourg > Interdisciplinary Centre for Security, Reliability and Trust (SNT) > Entrepreneurship, Innovation, and New Technology (EINT)
Meoli, Michele
Vismara, Silvio
Block, Jörn
External co-authors :
yes
Language :
English
Title :
The effect of trademark breadth on IPO valuation and post-IPO performance: an empirical investigation of 1,510 European IPOs