The Role of Trademarks in Going Public

Kyriakos  Drivas; Claire Economidou; Dimitrios Gounopoulos; Dimitrios Konstantios; Dimitrios Konstantios

doi:10.1016/j.bar.2025.101734

The Role of Trademarks in Going Public

Kyriakos Drivas, Claire Economidou, Dimitrios Gounopoulos, Dimitrios Konstantios, Dimitrios Konstantios

Research output: Contribution to journal › Article › peer-review

Abstract

This study examines the importance of valuable trademarks as a quality lever for firms raising capital during and shortly after their Initial Public Offering (IPO). Based on a sample of 2,275 US IPOs, we find that high-value trademarks leads to higher underpricing. This finding is more pronounced for service firms than product firms and also in competitive industries. A post-IPO analysis confirms that particularly high-value trademarks are important assets in a firm’s valuation. Issuers with more valuable trademarks can survive longer in the public domain, realizing superior post-IPO performance in terms of higher abnormal returns and market value creation. Finally, high-value trademarks enables issuers to raise more equity capital sooner through Seasoned Equity Orderings (SEOs) compared to their peers.

Original language	English
Article number	101734
Journal	The British Accounting Review
Early online date	8 Aug 2025
DOIs	https://doi.org/10.1016/j.bar.2025.101734
Publication status	E-pub ahead of print - 8 Aug 2025

Data Availability Statement

Data will be made available on request.

Keywords

Firm valuation
Information asymmetry
Initial public offering (IPO)
Trademarks
Underpricing

ASJC Scopus subject areas

Accounting

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10.1016/j.bar.2025.101734Licence: CC BY

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The Role of Trademarks in Going Public

Abstract

Data Availability Statement

Keywords

ASJC Scopus subject areas

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