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Innovation Continuity as Indicator for Observing Stock Return Rate in China Stock Market

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  • Hong-Wen Tsai
  • Hui-Chung Che
  • Bo Bai

Abstract

Based on the patent data and stock return rates of thousands of China listed companies (A-shares), the effect of the innovation continuity which representing by the patent publication frequency, on the stock return rate were analyzed via ANOVA. The innovation continuity was good for observing the stock return rate in the whole market, Shanghai main board and small-medium board. The A-shares with the stronger innovation continuity showed the higher stock return rate. The utility model grant’s innovation continuity was an indicator of the highest applicability. It could be applied for the whole market and any stock board. The design grant’s strongest innovation continuity group had the highest stock return rate mean among all patent species’ strongest innovation continuity groups 5 though the design grant was usually regarded as the most valueless patent species in China. The invention grant was always regarded as the most valuable patent species around the world, yet the stock return rate variance between the strongest innovation continuity groups of the invention grant and the invention publication was not significantly different. The invention publication’s innovation continuity was more recommended rather than the invention grant’s innovation continuity.JEL classification numbers: C12, G11.

Suggested Citation

  • 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.
    • Handle: RePEc:spt:admaec:v:11:y:2021:i:5:f:11_5_2
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    References listed on IDEAS

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    1. Dang, Jianwei & Motohashi, Kazuyuki, 2015. "Patent statistics: A good indicator for innovation in China? Patent subsidy program impacts on patent quality," China Economic Review, Elsevier, vol. 35(C), pages 137-155.
    2. Patrick Thomas, 2001. "A relationship between technology indicators and stock market performance," Scientometrics, Springer;Akadémiai Kiadó, vol. 51(1), pages 319-333, April.
    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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    Cited by:

    1. 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.
    2. Chin-Yi Chen & Ching-Lin Chu & Hui-Chung Che & Hong-Wen Tsai & Bo Bai, 2022. "Using Patent Drawings to Differentiate Stock Return Rate of China Listed Companies. A Study on China Patent Species of Invention Grant," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 12(3), pages 1-4.

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    More about this item

    Keywords

    Patent; China A-share; Innovation Continuity; ANOVA; Stock Price; Return Rate.;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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