Open AccessUsing Patent Drawings to Differentiate Stock Return Rate of China Listed Companies. A Study on China Patent Species of Invention Grant
Author(s) -
Chin-Yi Chen,
ChingLung Chu,
Hui-Chung Che,
Hong-Wen Tsai,
Bo Bai
Publication year - 2022
Publication title -
advances in management and applied economics
Language(s) - English
Resource type - Journals
ISSN - 1792-7544
DOI - 10.47260/amae/1234
Subject(s) - stock (firearms) , china , renminbi , rate of return , business , commerce , economics , finance , engineering , geography , exchange rate , mechanical engineering , archaeology
Patent is an important outcome of technological innovation. Though patent claimalways caught attention when considering patent quality, it had to be supported bythe drawings according to the patent examination criteria. However, patent drawingwas seldom discussed. Based on the company integrated database, more than 50%of China listed companies of RMB common stocks (A-shares) from 2017Q1 to2021Q4 were selected as effective samples. The effect of China invention grantpatent’s drawing count for differentiating A-share’s stock return rate wasthoroughly discussed via analysis of variation (ANOVA). The average drawingcount of invention grants significantly increased over previous years. However, thetotal drawing count of invention grants was found to be an appropriate patentindicator for differentiating A-share’s stock return rate whereas the average drawingcount of invention grants was not. The A-shares in the highest total drawing countgroups of invention grants showed significantly higher stock return rate meanswhile the A-shares in the lower total drawing count groups of invention grantsshowed significantly lower stock return rate means in most quarters from 2017 to2021. The finding also proved that the patent quantity still mattered in China stockmarket.JEL classification numbers: C38, C46, G11, G12.Keywords: Patent, ANOVA, Stock return rate, Drawing count, Invention grant.