The Impact Of Patent Certification On Enterprise Value

In the era of rapid knowledge updating,scientific and technological innovation has become an important driving force for national development.Meanwhile,patent research and development has flourished,and enterprises have become the main force in the application group.On the one hand,enterprises and investors believe that patent research and development can make enterprises maintain unique competitiveness,thereby enhancing enterprise value.On the other hand,because of the huge investment and uncertain results of patent research and development process,enterprises and investors are skeptical about the cost-effectiveness of patent research and development.Therefore,exploring the impact of patents for enterprise value has significant theoretical and practical meaning.Based on the announcements,stock prices and financial data of A-share listed companies from 2010 to 2015,this paper explores the impact of patent certification announcements on enterprise value by using event study method.The short-term and long-term effects of patent certification announcements are studied respectively.The long-term effects include the enterprise market value change and operating performance change.The Fama-French five-factor model is selected as the normal return model,and the abnormal return on the announcement day is taken as the short-term impact index.We take the cumulative abnormal return and the total return on assets in the two years after the announcement as the long-term market value and long-term operating performance index respectively,and then test the significance of the five-factor model before and after issuance.Furthermore,this paper makes a detailed study of patent and capital market,and explores the contribution effects of three types of patents to enterprise value,and the contribution effects of patents to enterprises of different scale and maturity.Therefore,the degree of innovation is regarded as the first dimension,which is the invention patents with higher degree of innovation,the utility model patents and the design patents with lower degree of innovation.A-share listed companies are divided into main board,small and medium-sized board and GEM board according to different listing conditions.They represent large mature enterprises,growth-oriented start-ups and mature SMEs respectively.At the same time,we combine the two dimensions to form four patent portfolios of different nature,discussing the impact of subdivision dimension on enterprise value.Several conclusions are drawn from the study.Firstly,in the short term,patent certification announcements can significantly enhance the market value of enterprises.Specifically,invention patents play an obvious role in promoting enterprise value,utility model patents and appearance design patents have positive but not significant role.Moreover,compared with mature SMEs(mature small and medium-sized enterprises)and start-ups,acquiring invention patents has the most profound impact on large enterprises.Secondly,in the long run,patents will not significantly enhance the market value of enterprises,but can prevent enterprise value from declining.Specifically,invention patents and utility model patents have remarkable effect on improving the value of mature SMEs and start-ups.Thirdly,in the long run,invention patents can significantly improve operating performance,Utility model patents and design patents do not improve operating performance.In addition,patents can significantly improve the long-term performance of mature SMEs,and can reverse the deterioration of long-term performance of large enterprises,but have no significant effect on start-ups.The innovation point of the article:Firstly,starting from the patent certification announcements,we explore the impact of patents on enterprise value.Some scholars have explored the impact of patents on enterprise value from the perspective of enterprise patent stock,patent citation and patent market concentration.There is no research on the impact of patents on enterprise value from enterprise patent announcement.Compared with other indicators,patent certification announcement has more timeliness,so that can study the economic effects of patents more accurately.Secondly,we use event study to systematically examine the impact of patents on enterprise value.Throughout the application of event study method in the field of capital,no scholars have applied event study method to patent related research.Its applicability is as follows:first of all,event study method has been widely used in the study of various announcements,and several scholars have proved its validity in China's stock market;secondly,As a typical announcement type of listed companies,it has timeliness,openness,authority and impartiality,and is fully applicable to the event study method.Finally,the patent announcement reflects the R&D level of listed companies from the side,and the research results will also provide meaningful decision-making reference for enterprises.Therefore,this paper applies event research method to the event of patent certification announcement issued by enterprises to explore the impact of patents on enterprise value.Moreover,the current research focuses on the short-term effects of each event.This paper not only analyzes the short-term economic effects of patents,but also analyzes the long-term economic effects,which is more systematic.Thirdly,explore the effect of subdividing patents and combinations on enterprise value.Most of the relevant research in the academic circles only explores the impact of patents on enterprise value,but few studies have explored the impact of different types of patents on enterprise value.Therefore,this article subdivides patents to conduct related research,and hope to have a deeper understanding of different patents.