Stock Market Reaction to Patent Value in Japan: an Event Study Analysis
The patent is regarded as an indicator of a firm’s innovativeness and many studies have tried to use it as a proxy for the same. However, little research focuses on the impact of the substantial value of patents on stock prices. This study employs event study analysis to explore the stock market reaction to the announcement of the “Patent Value Brand” by the Tokyo Stock Exchange and the “YK Value,” which is used to measure the economic value of a patent during the selection process. Our finding reveals little evidence for positive and significant stock price reactions to the brand announcement around the event day. In addition, the result is not altered in terms of cumulative abnormal returns over a longer term. We conclude that the stock market did not respond to the announcement of the Patent Value Brand and the substantial value of patents which is represented by the YK Value. Journal: Journal of Knowledge Management, Economics and Information Technology
Volume (Year): 3 (2013)
Issue (Month): 6 (December)
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