Financial Market Reaction to Patent Lawsuits against Integrated Circuit Design Companies
Abstract
:1. Introduction
2. Literature Review
3. Research Method and Materials
3.1. Event Study
3.2. Market Model
3.3. Abnormal Return
- (1)
- Abnormal return
- (2)
- Average abnormal return
- (3)
- Cumulative abnormal return
3.4. Cross-Sectional Multiple Regression
- (1)
- Debt ratio (DEBT)
- (2)
- Firm size (SIZE)
- (3)
- Trading volume (VOL)
4. Empirical Results
5. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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AR | p-Value | AR | p-Value | ||
---|---|---|---|---|---|
−15 | 0.137 | 0.572 | 1 | 0.199 | 0.413 |
−14 | 0.143 | 0.556 | 2 | 0.148 | 0.542 |
−13 | 0.160 | 0.510 | 3 | 0.079 | 0.745 |
−12 | 0.256 | 0.292 | 4 | −0.191 | 0.431 |
−11 | 0.056 | 0.818 | 5 | 0.041 | 0.866 |
−10 | 0.380 | 0.118 | 6 | 0.048 | 0.845 |
−9 | −0.016 | 0.947 | 7 | −0.201 | 0.407 |
−8 | −0.016 | 0.948 | 8 | 0.034 | 0.890 |
−7 | 0.287 | 0.236 | 9 | 0.405 * | 0.095 |
−6 | 0.200 | 0.410 | 10 | 0.385 | 0.113 |
−5 | 0.080 | 0.742 | 11 | −0.343 | 0.157 |
−4 | 0.408 * | 0.093 | 12 | 0.134 | 0.580 |
−3 | −0.151 | 0.535 | 13 | 0.327 | 0.178 |
−2 | 0.483 ** | 0.046 | 14 | −0.239 * | 0.325 |
−1 | −0.183 | 0.451 | 15 | −0.317 | 0.191 |
0 | −0.099 | 0.684 |
CAR | p-Value | CAR | p-Value | ||
---|---|---|---|---|---|
−15 | 0.137 | 0.572 | 1 | 2.324 ** | 0.020 |
−14 | 0.280 | 0.415 | 2 | 2.472 ** | 0.016 |
−13 | 0.440 | 0.295 | 3 | 2.551 ** | 0.016 |
−12 | 0.696 | 0.152 | 4 | 2.359 ** | 0.030 |
−11 | 0.751 | 0.166 | 5 | 2.400 ** | 0.031 |
−10 | 1.131 | 0.057 | 6 | 2.448 ** | 0.032 |
−9 | 1.115 | 0.083 | 7 | 2.247 * | 0.054 |
−8 | 1.099 | 0.109 | 8 | 2.280 * | 0.055 |
−7 | 1.386 * | 0.057 | 9 | 2.686 ** | 0.027 |
−6 | 1.586 ** | 0.039 | 10 | 3.070 ** | 0.013 |
−5 | 1.666 ** | 0.038 | 11 | 2.727 ** | 0.031 |
−4 | 2.074 ** | 0.014 | 12 | 2.862 ** | 0.026 |
−3 | 1.923 ** | 0.028 | 13 | 3.188 ** | 0.015 |
−2 | 2.407 *** | 0.008 | 14 | 2.949 ** | 0.027 |
−1 | 2.224 ** | 0.018 | 15 | 2.632 * | 0.051 |
0 | 2.125 ** | 0.029 |
Period | (−1,0) | (0,1) | (−5,5) | (−3,0) | (−2,1) | (−2,2) |
---|---|---|---|---|---|---|
CAR | −177.860 *** | 58.120 *** | 11.522 | −9.045 | −0.488 | 12.382 |
T-value | −16.806 | 5.492 | 0.464 | −0.604 | −0.033 | 0.740 |
CAR (−1,0) | CAR (0,1) | ||||
---|---|---|---|---|---|
Variable | Coefficient | t-Statistics | Variable | Variable | Coefficient |
Intercept term | 1.038 | 0.8418 | Intercept term | 1.869 | 1.328 |
Debt ratio | 0.0263 | −0.6741 | Debt ratio | −0.0136 | −0.3810 |
Firm size | 1.132 × 10−6 | −1.622 | Firm size | −3.240 × 10−7 | 0.2467 |
Trading volume | 9.564 × 10−5 | 0.1192 | Trading volume | −0.000 *** | −2.705 |
R-squared | 0.0586 | R-squared | 0.0706 | ||
Sum squared resid | 234.204 | Sum squared resid | 320.086 | ||
F(3,52) | 1.060 | F(3,52) | 3.0214 | ||
White’s test | 23.369 | White’s test | 5.284 | ||
with p-value | 0.00542 | with p-value | 0.809 |
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Yu, S.-C.; Shih, K.-H. Financial Market Reaction to Patent Lawsuits against Integrated Circuit Design Companies. J. Risk Financial Manag. 2021, 14, 433. https://doi.org/10.3390/jrfm14090433
Yu S-C, Shih K-H. Financial Market Reaction to Patent Lawsuits against Integrated Circuit Design Companies. Journal of Risk and Financial Management. 2021; 14(9):433. https://doi.org/10.3390/jrfm14090433
Chicago/Turabian StyleYu, Su-Chen, and Kuang-Hsun Shih. 2021. "Financial Market Reaction to Patent Lawsuits against Integrated Circuit Design Companies" Journal of Risk and Financial Management 14, no. 9: 433. https://doi.org/10.3390/jrfm14090433