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Using Patent Drawings to Differentiate Stock Return Rate of China Listed Companies. A Study on China Patent Species of Utility Model Grant

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  • Chin-Yi Chen
  • Ching-Lin Chu
  • Hui-Chung Che
  • Hong-Wen Tsai

Abstract

Patent is an important outcome of technological innovation. Though patent claim always caught attention when considering patent quality, it had to be supported by the drawings according to the patent examination criteria. However, patent drawing was seldom discussed. Based on the company integrated database, more than 50% of China listed companies of RMB common stocks (A-shares) from 2017Q1 to 2021Q4 were selected as effective samples. The effect of China utility model grant patent’s drawing count for differentiating A-share’s stock return rate was thoroughly discussed via analysis of variation (ANOVA). The average drawing count and the total drawing count of utility model grants significantly increased over previous five years. The total drawing count of utility model grants was found to be an appropriate patent indicator for differentiating A-share’s stock return rate whereas the average drawing count was not. The A-shares in the highest total drawing count groups of utility model grants showed significantly higher stock return rate means while the A-shares in the lower total drawing count groups showed significantly lower stock return rate means mostly from 2017Q1 to 2021Q4. The finding also proved that the utility model grant’s patent quantity still mattered in China stock market.  JEL classification numbers: C38, C46, G11, G12.

Suggested Citation

  • Chin-Yi Chen & Ching-Lin Chu & Hui-Chung Che & Hong-Wen Tsai, 2022. "Using Patent Drawings to Differentiate Stock Return Rate of China Listed Companies. A Study on China Patent Species of Utility Model Grant," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 12(4), pages 1-1.
    • Handle: RePEc:spt:admaec:v:12:y:2022:i:4:f:12_4_1
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    References listed on IDEAS

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    1. Liu, Qing & Qiu, Larry D., 2016. "Intermediate input imports and innovations: Evidence from Chinese firms' patent filings," Journal of International Economics, Elsevier, vol. 103(C), pages 166-183.
    2. Hong-Wen Tsai & Hui-Chung Che & Bo Bai, 2021. "Innovation Continuity as Indicator for Observing Stock Return Rate in China Stock Market," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 11(5), pages 1-2.
    3. Yu-Jing Chiu & Kuang-Chin Chen & Hui-Chung Che, 2020. "Does Patent Help to Build Investment Portfolio of China A-Shares under China-US Trade Conflict?," Mathematical Problems in Engineering, Hindawi, vol. 2020, pages 1-12, May.
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    5. Hong-Wen Tsai & Hui-Chung Che & Bo Bai, 2022. "Longer Patent Life Representing Higher Value? A Study on China Stock Market and China Patents," Bulletin of Applied Economics, Risk Market Journals, vol. 9(1), pages 115-136.
    6. Boeing, Philipp & Mueller, Elisabeth, 2019. "Measuring China's patent quality: Development and validation of ISR indices," China Economic Review, Elsevier, vol. 57(C).
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    Cited by:

    1. Ran Ma & Xiaodan Kong & Mianqing Wang & Xiangde Kong, 2023. "The Impact of Utility Model Patent Quality on Export Performance in China: A Moderated Mediation Effect Model," Sustainability, MDPI, vol. 15(10), pages 1-18, May.

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    More about this item

    Keywords

    ANOVA; Stock return rate; Patent drawing; Utility model grant.;
    All these keywords.

    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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