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
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: Suggested Citation
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