Patent is an important outcome of technological innovation. Though
patent claim always caught attention when considering patent quality, it had to
be supported by the drawings according to the patent examination criteria.
However, patent drawing was seldom discussed. Based on the company integrated
database, more than 50% of China listed companies of RMB common stocks
(A-shares) from 2017Q1 to 2021Q4 were selected as effective samples. The effect
of China invention grant patent’s drawing count for differentiating A-share’s
stock return rate was thoroughly discussed via analysis of variation (ANOVA).
The average drawing count of invention grants significantly increased over
previous years. However, the total drawing count of invention grants was found
to be an appropriate patent indicator for differentiating A-share’s stock
return rate whereas the average drawing count of invention grants was not. The
A-shares in the highest total drawing count groups of invention grants showed
significantly higher stock return rate means while the A-shares in the lower
total drawing count groups of invention grants showed significantly lower stock
return rate means in most quarters from 2017 to 2021. The finding also proved
that the patent quantity still mattered in China stock market.
JEL classification numbers: C38, C46, G11, G12.
Keywords: Patent, ANOVA, Stock return rate, Drawing count, Invention