The Importance of Being Steve: An Econometric Analysis of the Contribution of Steve Jobs¡¯s Patents to Apple¡¯s Market Valuation

Daniel K.N. Johnson and Sylvie Scowcroft

International Journal of Financial Research, 2016, vol. 7, issue 2, 30-38

Abstract: This paper evaluates the contribution of patent-related events to changes in stock prices, proposing that economics has traditionally failed to find much effect for two reasons which we identify and correct. First, patents vary widely in quality so we use quantile analysis and alternative measures of patent quality to identify effects. Second, we permit the possibility that information leaks out into investor sentiment during the long and uncertain time until patent grant, so evaluate the stock price effect at four different dates in the life of each patent. As a case study to test this approach, track all patents over a 27-year period for Apple Inc., permiting design patents to have different effects that traditional utility-model patents, and isolate the effect that Steve Jobs¡¯s name on a patent has at each stage of a patent¡¯s life.

Keywords: patent; Apple; valuation; design patent; event analysis (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciedu.ca/journal/index.php/ijfr/article/view/9079/5488 (application/pdf)
http://www.sciedu.ca/journal/index.php/ijfr/article/view/9079 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jfr:ijfr11:v:7:y:2016:i:2:p:30-38

DOI: 10.5430/ijfr.v7n2p30

Access Statistics for this article

International Journal of Financial Research is currently edited by Gina Perry

More articles in International Journal of Financial Research from International Journal of Financial Research, Sciedu Press
Bibliographic data for series maintained by Gina Perry ().