Patent Thickets, Stock Returns, and Conditional CAPM

• 成果类型: Article
• 署名作者: Hsu, Po-Hsuan; Lee, Hsiao-Hui; Zhou, Tong
• 署名单位: National Tsing Hua University; National Chengchi University; ShanghaiTech University
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2021.4229
• 发表日期: 2022
• 页码: 8343-8367
• 关键词: patent thickets; Litigation costs; patent commercialization; stock returns; conditional capm

摘要

Patent thickets, a phenomenon of fragmented ownership of overlapping patent rights, hamper firms' commercialization of patents and thus deliver asset pricing implications. We show that firms with deeper patent thickets are involved in more patent litigations, launch fewer new products, and become less profitable in the future. These firms are also associated with lower subsequent stock returns, which can be explained by a conditional Capital Asset Pricing Model (CAPM) based on a general equilibrium model that features heterogeneous market betas conditional on time-varying aggregate productivity. This explanation is supported by further evidence from factor regressions and stochastic discount factor tests.