Option‐implied information and quality of patents-Reference-Cited by-同舟云学术

Option‐implied information and quality of patents

Published:2023-01-18 Issue:1 Volume:30 Page:164-186
ISSN:1354-7798
Container-title:European Financial Management
language:en
Short-container-title:Euro Fin Management

Author:

Li Wei‐Hsien¹,Liang Jiahang²,Lin Zih‐Ying³

Affiliation:

1. Department of Finance National Central University Taoyuan City Taiwan

2. Master of Science in Finance, Carey Business School Johns Hopkins University Baltimore Maryland USA

3. Department of Finance and International Business Fu Jen Catholic University New Taipei City Taiwan

Abstract

AbstractThis research explores how option‐implied information predicts quality of patents. Using several measures of option‐implied information, we find that only the option to stock volume (O/S) ratio positively and significantly predicts quality of patents around patent grant announcements. The findings are not entirely driven by information from the stock market and the probability of informed trading. Further investigations show that the predictability of O/S on patent quality is stronger when market sentiment is high, firms have a higher short‐sale cost, and the quality of patents is relatively high.

Publisher

Wiley

Subject

General Economics, Econometrics and Finance,Accounting

Link

https://onlinelibrary.wiley.com/doi/pdf/10.1111/eufm.12412

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