The impact of patent information disclosure on the stock returns of high-tech corporates: an event study

Abstract

ABSTRACT For high-tech listed companies, the disclosure of patent information in financial statements influences firms’ value. Using the event study method, we examine the stock market’s reaction to patent information in financial statements. After measuring patent information on six items and dividing the level of patent information disclosure into the high group and low group, the results show that patent information disclosure is associated with changes in stock return. In addition, the impact of patent information disclosure on the stock return of a firm depends on the credibility of the voluntarily disclosed patent information or its quality. When the credibility is high, the degree of patent information disclosure has a positive impact on the stock return, while when the credibility is low, the degree of patent information disclosure has a negative impact on the stock return. The findings shed light on the selection of patent information disclosure strategies and provide a basis for future scholars to study improvements in stock market efficiency.