The Value Relevance of Patents

• Main Authors: Jun-Xiong Chen, 陳俊雄
• Other Authors: Sou-Min Tsao
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/11502869595000386945

碩士 === 中原大學 === 會計研究所 === 90 === Astract This study investigates whether patents are value relevant. First, using the patents database from Intellectual Property Office and Taiwan Economic Journal, we find that patents stock have the incremental information content and value relevance in the input-output factors as sales and the capital markets. Further studies show that the explanatory power of the patents stock in the balance sheet and income statement. We employ a valuation methodology for the patents stock which supports the theory proposed by Cobb-Douglas form based on the empirical association between patents stock and sales. It comes to us that the estimated market value of patents stock is total about NT﹩4 hundred billion in our sample which it is lower, but demonstrating that these values are estimable and significant. Then using the Ohlson’s (1995) model, we test the value relevance of the patent numbers and estimated value.We find that the patents stock are value relevant and have incremental explanatory power over control variables, which supports the theory that infers to nonuseful financial reporting and the spillover effect. Overall, we show that patents stock is value relevance. This suggests that firms should improve the financial reporting by providing increased the disclosures about patents in the financial statements and protect the intellectual property for the goverment.