Trademarks in Entrepreneurial Finance

72 Pages Posted: 12 Jun 2018 Last revised: 21 Sep 2018

See all articles by Thomas J. Chemmanur

Thomas J. Chemmanur

Boston College - Carroll School of Management

Harshit Rajaiya

Boston College, Carroll School of Management, Department of Finance

Xuan Tian

Tsinghua University - PBC School of Finance

Qianqian Yu

Lehigh University

Date Written: Septembet 09, 2018

Abstract

We analyze the role of trademarks in entrepreneurial finance, hypothesizing that trademarks play two important roles: a “protective” role, leading to better product market performance; and an “informational” role, signaling higher firm quality to investors. We develop testable hypotheses relating the trademarks held by private firms to characteristics of venture capital (VC) investment in them, their probability of successful exit, IPO and secondary market valuations, institutional investor IPO participation, post-IPO operating performance, and post-IPO information asymmetry. We test these hypotheses using a large and unique dataset of trademarks held by VC-backed private firms and present causal evidence supporting them.

Keywords: Trademarks; Initial Public Offerings (IPOs); Private Firm Exit; Innovation

JEL Classification: G23, G24, L26, O34

Suggested Citation

Chemmanur, Thomas J. and Rajaiya, Harshit and Tian, Xuan and Yu, Qianqian, Trademarks in Entrepreneurial Finance (Septembet 09, 2018). Available at SSRN: https://ssrn.com/abstract=3183879 or http://dx.doi.org/10.2139/ssrn.3183879

Thomas J. Chemmanur (Contact Author)

Boston College - Carroll School of Management ( email )

Finance Department, 436 Fulton Hall
Carroll School of Management, Boston College
Chestnut Hill, MA 02467-3808
United States
617-552-3980 (Phone)
617-552-0431 (Fax)

HOME PAGE: http://https://www2.bc.edu/thomas-chemmanur/

Harshit Rajaiya

Boston College, Carroll School of Management, Department of Finance ( email )

154 A, Fulton Hall, Carroll School of Management
140 Commonwealth Avenue
Chestnut Hill, MA 02467
United States

Xuan Tian

Tsinghua University - PBC School of Finance ( email )

No. 43, Chengfu Road
Haidian District
Beijing 100083
China
+86-10-62794103 (Phone)

HOME PAGE: http://xuantian.info/

Qianqian Yu

Lehigh University ( email )

621 Taylor Street
Bethlehem, PA 18015
United States

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