Finance: The effect of trademark breadth on IPO valuation
Published: 26 January 2022
9 February. Professor Silvio Vismara, University of Bergamo
Professor Silvio Vismara, University of Bergamo
'The effect of trademark breadth on IPO valuation and post-IPO performance: an empirical investigation of 1,510 European IPOs'
Wednesday 9 February, 1pm - 2.15pm
Zoom online seminar
Abstract
Trademarks are critical assets that allow firms to protect their brands and marketing assets from imitation. 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 apply these conceptional arguments to the IPO context and analyze a sample of 1,510 firms that went public in Europe between 2002 and 2015. Consistent with our theoretical considerations, we find a positive effect of trademark breadth on IPO valuation and post-IPO performance. The effect is stronger for service-intensive and diversified firms but diminishes for high levels of trademark breadth.
Biography
Silvio Vismara is a Professor of Entrepreneurial Finance at the University of Bergamo, Italy. He received his PhD in Economics and Management from Politecnico di Torino and the University of Bergamo in 2004. He was visiting scholar at the Manchester Business School, at the Cass Business School, and at the University of Florida. He is co-founder of the CCSE research centre with the University of Augsburg, Germany. His research on IPOs and crowdfunding has been covered by The Economist, Financial Times, and Investors Chronicle. He has been the guest editor of special issues in Small Business Economics (three times), Corporate Governance An International Review, Journal of Technology Transfer, International Review of Entrepreneurship, Eurasian Business Review, and Journal of Industrial and Business Economics. He established an academic spinoff (Universoft) in 2004 and currently serves as scientific consultant for the Italian Stock Exchange.
Further information: business-events@glasgow.ac.uk
First published: 26 January 2022
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