The effect of trademark breadth on IPO valuation and post-IPO performance: an empirical investigation of 1510 European IPOs

Christian Fisch, Michele Meoli, Silvio Vismara and Joern Block

Journal of Business Venturing, 2022, vol. 37, issue 5

Abstract: 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.

Keywords: Trademarks; Trademark breadth; Real options theory; IPO; Buy-and-hold returns; Signaling theory. (search for similar items in EconPapers)
JEL-codes: G32 L25 O34 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbvent:v:37:y:2022:i:5:s0883902622000490

DOI: 10.1016/j.jbusvent.2022.106237

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