Trademark Filing Strategies and Their Valuation: Creating, Hedging, Modernizing, and Extending Brands
Financial markets value companies based on the future cash flows that are generated by their assets. These assets include not only tangibles but also intangibles such as knowledge assets or brands. Both of these types of assets play an important role in the valuation of a company but intangibles are generally difficult to price. Understanding the contribution of knowledge assets to the market value of companies has a long history, and researchers have often used R&D expenditures and patent data when estimating the value of these assets (e.g., Connolly and Hirschey, 1988; Griliches, 1981; Hall, 2000; Hall et al., 2007). Contrary to that, the contribution of brands to companies' market values has been less rigorously researched. There are some notable exceptions, in which researchers empirically investigated the relation between brands and company values in financial markets (e.g., Barth et al., 1998; Kallapur and Kwan, 2004; Simon and Sullivan, 1993). Researchers in this area have employed different measures at the brand-level to analyze the determinants of brand value and to estimate the share of brand assets in total company value.
KeywordsIntangible Asset Future Cash Flow Advertising Expenditure Parent Brand Brand Extension
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