Trademark Activity and the Market Performance of U.S. Commercial Banks

Journal of Business Economics and Management, Forthcoming

27 Pages Posted: 20 Apr 2012

Date Written: November 14, 2011

Abstract

This empirical paper analyzes the effect of trademark activity on the market value and performance of U.S. commercial banks from two perspectives. First, a long-term perspective considers the effect of such activity on banks’ Tobin’s q. Second, with a short-term perspective, the authors analyze the effect of trademark activity on banks’ abnormal returns. An older portfolio of trademarks diminishes the ratio of market value to firm assets, but this ratio can be improved in the long term by abandoning old trademarks. Portfolios of trademarks with wide diversification do not help increase Tobin’s q. Furthermore, according to an event study, the creation of a trademark has a positive effect on cumulative abnormal returns compared with no event, whereas a cancellation event has a negative impact.

Keywords: Intangible assets, trademarks, Tobin’s q, abnormal returns, event studies

JEL Classification: G21, M3

Suggested Citation

G. Pedraz, Carlos and Mayordomo, Sergio, Trademark Activity and the Market Performance of U.S. Commercial Banks (November 14, 2011). Journal of Business Economics and Management, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2043150 or http://dx.doi.org/10.2139/ssrn.2043150

Carlos G. Pedraz (Contact Author)

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Sergio Mayordomo

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
125
Abstract Views
803
Rank
407,300
PlumX Metrics