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 utility model 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 and the total
drawing count of utility model grants significantly increased over previous
five years. The total drawing count of utility model grants was found to be an
appropriate patent indicator for differentiating A-share’s stock return rate
whereas the average drawing count was not. The A-shares in the highest total
drawing count groups of utility model grants showed significantly higher stock
return rate means while the A-shares in the lower total drawing count groups
showed significantly lower stock return rate means mostly from 2017Q1 to
2021Q4. The finding also proved that the utility model grant’s patent quantity
still mattered in China stock market.
JEL classification numbers: C38, C46, G11, G12.
Keywords: ANOVA, Stock return
rate, Patent drawing, Utility model grant.