The Strategic Effects of Trademark Protection

Heath, Davidson; Mace, Christopher

doi:10.1093/rfs/hhz084

Cited by 66 publications

(41 citation statements)

References 47 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The final validation asks if and how our the new estimates of intangible capital can explain previously established measures of patent values and trademark production. We find that the "Exits" stocks explain relatively more of the cross-sectional variation in patent valuations from Kogan, Papanikolaou, Seru, and Stoffman (2017) and the number of new trademarks filed by a firm in a given year (Heath and Mace, 2020).…”

mentioning

confidence: 83%

See 1 more Smart Citation

Measuring Intangible Capital with Market Prices

Ewens

Peters

Wang

2019

View full text Add to dashboard Cite

Current standards prohibit the capitalization of internally created intangibles, resulting in a downward bias of reported assets. We estimate a capitalization model using market prices of intangibles to estimate the parameters of the capital accumulation process. Two settings provide intangible asset values: publicly traded equity prices and exit prices. We use these parameters to estimate intangible capital stocks and subject them to an extensive set of validation tests that compare them with stocks estimated using existing parameters. Intangible stocks developed from exit price parameters outperform both stocks developed by publicly traded parameters and those stocks developed with existing estimates.

show abstract

mentioning

confidence: 83%

“…40 Untabulated, we find that β2 is positive and significant with all capital stocks. 41 The data are available in the Internet Appendix of Heath and Mace (2020).…”

Section: Trademarksmentioning

confidence: 99%

Measuring Intangible Capital with Market Prices

Ewens

Peters

Wang

2019

View full text Add to dashboard Cite

show abstract

“…To overcome the endogenous nature of a firm's trademarking activities, several studies have used the 1996 FTDA as an exogenous shock to examine how enhanced trademark protection affects firm outcomes. For example, Heath and Mace (2020) showed that stronger trademark protection increases firms' operating profits but has negative effects on firm innovation and product quality. Chiu et al (2019) found evidence that US public firms use trademarks as collateral to secure bank loans and that strengthened trademark protection decreases the cost of a firm's bank loans.…”

Section: Recent Literature On Trademarksmentioning

confidence: 99%

“…Several recent studies have adopted the FTDA as an exogenous shock to examine how increased trademark protection affects firm outcomes (Chiu et al, 2019;Heath & Mace, 2020). To make a causal link between trademarks and IPO underpricing in our paper, we follow these studies in introducing the FTDA in the context of our setting.…”

Section: 21mentioning

confidence: 99%

“…To establish causality, we therefore employ various econometric techniques designed to address the endogeneity problem. First, following Heath and Mace (2020) and Chiu et al (2019), we take advantage of the 1996 Federal Trademark Dilution Act (FTDA) as an arguably exogenous shock to trademark protection that reinforces the informational value of trademarks. We find that, after legal protection of trademarks is enhanced, the effect of trademarks on underpricing becomes stronger.…”

mentioning

confidence: 99%

See 1 more Smart Citation

Trademark and IPO underpricing

Yang

Yuan

2021

Financial Management

View full text Add to dashboard Cite

Although trademarks are mentioned in many firms' initial public offering (IPO) prospectuses, their influences on the IPO valuation process are underexplored. This paper studies the relationship between a firm's pre-IPO trademarks and its IPO underpricing. Using 4457 US IPOs during the period 1980-2018, we find that firms with a larger number of trademarks prior to the IPO date experience significantly less IPO underpricing. We employ a quasi-natural experiment brought about by the 1996 Federal Trademark Dilution Act and an instrumental variable approach to establish causality.Our findings suggest that trademarks help reduce information asymmetry among various IPO participants, leading to less underpriced IPOs.

show abstract

Does brand capital improve stock liquidity? Evidence from China

Majeed,

Ullah,

Tariq

et al. 2023

Int. J Fin Econ

View full text Add to dashboard Cite

This study investigates how brand capital affects stock market liquidity. We posit that brand capital improves the corporate information environment, enhances competitiveness, and increases firm visibility ultimately resulting in higher stock liquidity. Using a sample of Chinese listed firms, we find a positive relationship between brand capital and stock liquidity. Further analyses show that the effect of brand capital is more pronounced for firms with low media coverage and analyst following. Moreover, the effect of brand capital on stock liquidity is significant for non‐state‐owned enterprises. Our mechanism analyses also confirm that brand capital plays an informational role by effectively mitigating information asymmetry and adverse selection, leading to higher stock liquidity. Our study provides the first evidence of the nexus between brand capital and stock liquidity and extends the literature on the capital market implications of brand capital.

show abstract

The Strategic Effects of Trademark Protection

Cited by 66 publications

References 47 publications

Measuring Intangible Capital with Market Prices

Measuring Intangible Capital with Market Prices

Trademark and IPO underpricing

Does brand capital improve stock liquidity? Evidence from China

Contact Info

Product

Resources

About