(The) effect of frequent patent disclosures on firm value

Abstract

This study analyzed the effect of patent disclosure in relation to the frequency of such disclosures. According to KOSDAQ(Korean Securities Dealers Automated Quotations) standards, we divided companies into four divisions: venture, superior, mid-sized, and technology-growth divisions. Each division was then divided into high and low disclosure groups

then each of the eight groups were analyzed. As a result, the venture and medium-sized divisions with a high frequency of patent disclosure confirmed the existence of a negative response by the market to patent disclosure. The interpretation of this is that in these cases the market responds to an abuse of patent disclosure. In addition, the higher frequency technology-growth group showed a higher positive disclosure effect than the other groups. It is found that the enterprise value of technology-growth firms is influenced by the frequency of patent disclosure, and the smaller the investment in development costs, the greater the effect of patent disclosure.