Patent-Based Predictive ROE on Increasing Investment Performance of China Stock Market

Dynamic correlation of market connectivity, risk spillover and abnormal volatility in stock price

“…The coefficients are estimated by the multivariate quadratic assignment method, using 1000 random permutations; this can overcome the variable covariance problem. The financial situation of listed companies is often considered to be one of the key concerns of investors, which often directly affects the trading and activity of stocks and thus their correlations; The total market capitalization of listed companies is the most direct reflection of the size of stocks; large-cap stocks are often directly related to the trend of the composite index, and thus tend to be at the center of the market [31,32]. This leads to the following hypotheses:…”

Longer Patent Life Representing Higher Value? A Study on China Stock Market and China Patents

“…Chen, Wei & Che (2018, 2020 discussed China patent data and the stock price data of China listed companies in Shanghai main board from 2011 to 2017 and found some patent indicators have the leading effects on the stock price. Chiu, Chen & Che (2020a, 2020b focused on the whole China stock market data from 2016Q4 to 2018Q3. They found that some patent indicators also have the leading effect on the other financial indicators such as return-on-asset (ROA), return-on-equity (ROE), book-value-per-share (BPS), earnings-per-share (EPS), price-to-book (PB) and price-to-earnings (PE).…”

“…They also proposed the patent prediction equations for quantitatively giving the predictive values of the aforementioned financial indicators. Chiu, Chen & Che (2020c, 2020d, 2020e, 2020f, 2021, Li, Deng & Che (2020a, 2020b, 2021 further studied the patent leading effect on various stock boards of China, proposed each stock board's patent prediction equations on the stock price, ROA, ROE, BPS, EPS, PB and PE, finally proposed patent based stock selection criteria to have stock portfolio performance surpassing the market trend. Tsai, Che & Bai (2021a, 2021b, 2021c, 2021d, 2021e, 2021f, 2022 discussed the relationship between various China patent indicators and the performance of China listed companies (A-shares).…”

Industry Difference on Patent Drawing’s Capability for Differentiating Stock Rates of Return of Chinese Listed Companies in Non-Manufacturing Industry Sectors -- An Explore into Invention Publication Patents and Utility Model Grant Patents

“…Lai and Che (2009a, 2009b, 2009c gave a first start on using the drawing count of US patents by applied the drawing count as an indicator for quantitatively modeling damage awards of infringement lawsuits. Though the drawing count of China patents has been applied for quantitatively giving the predictive values of A-share's financial indicators (Chiu et al, 2020a(Chiu et al, , 2020b(Chiu et al, , 2020c(Chiu et al, , 2020d(Chiu et al, , 2020e, 2020f, 2021Li et al, 2020aLi et al, , 2020bLi et al, , 2021, however, the relationship between the drawing count and A-share's financial performance has not been discussed therein. Tsai, Che & Bai (2022f) focused on China invention publication patents, discussed the average drawing count per patent and the total drawing count, and found that the average drawing count of invention publications was not a good indicator for differentiating China A-share's stock rate of return, whereas the total drawing count of invention publications was a good indicator because the A-shares having higher total drawing counts of invention publications usually showed higher stock rates of return.…”