Nowadays, the world has recognized that development of the origin technology is one of important factors because intangible assets, such as information, technology, patent right are factor to strengthen the competitiveness. This study analyzes the effect of patent application and public announcement of patent right on the stock price.
Empirical analysis has been performed for the sample, which applied and acquired public announcement of patent right from Jan 1, 2004 to Dec 31, 2005. The sample is obtained from DART system and then we have finally selected suitable 1,488 samples.
First, the public announcement of the patent right has positive effect on the stock price. The stock price has gotten that cumulative average excess return is 1.1% and is significant under 5% confidence level.
Second, the public announcement of the firm has commonly acquired domestic first. And it has applied and acquired foreign. The domestic public announcement of the firm has gotten that cumulative average excess return is 1.44% and is significant under 5% confidence level but the foreign public announcement of the firm has don't.
Third, the public announcement of the firm has been respectively studied on venture businesses and common corporations in KOSDAQ. The public announcement of the venture business has gotten that cumulative average excess return is 2.2% and is significant under 1% confidence level but the public announcement of the common corporation has don't.
Fourth, the value of corporations that have patent right is differently showed in compliance with the nature of the industry. The manufacturing industry has gotten that cumulative average excess return is 0.82% and is significant under 10% confidence level and developing and supplying industry has gotten that cumulative average excess return is 5.74% and is significant under 5% confidence level but the service industry has don't.
The critical point of this study is that I do analyze the event in such a case that the public announcement of the firm is at least once. And I don't control the effect of other public announcement except for acquired patent right. Other critical point is not enough period of the sample. So I can't perform the study concerning other industry except for the manufacturing, the service, entertainment, and so on. I recommend further the study on the sample involving other industry.