Advances in Management and Applied Economics

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

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• 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.

  Keywords: Patent, China A-share, Innovation Continuity, ANOVA, Stock Price, Return Rate.