Valuation of New Trademarks

• 成果类型: Article
• 署名作者: Hsu, Po-Hsuan; Li, Dongmei; Li, Qin; Teoh, Siew Hong; Tseng, Kevin
• 署名单位: National Tsing Hua University; University of South Carolina System; University of South Carolina Columbia; Hong Kong Polytechnic University; University of California System; University of California Irvine; National Taiwan University; National Taiwan University
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2020.3887
• 发表日期: 2022
• 页码: 257-279
• 关键词: innovation; trademarks; exploratory trademarks; stock returns; limited attention; uncertainty; market efficiency; analyst forecast; anomalies; trading strategies

摘要

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.