Who do you trust while Shares are on a Roller-Coaster Ride? Balance Sheet and Patent Data as Sources of Investor Information During Volatile Market Times

Fred Ramb, Markus Reizig

Research output: Working paperResearch

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We originally investigate the comparative usefulness of patent data as a source of investor information depending on the market cycle (bull/bear market). Based on comprehensive data for firms listed on German exchanges between 1997 and 2002, we demonstrate that patent data contain complementary explanatory power to accounting data irrespective of the standard used to prepare the financial statement (German GAAP, IAS and US GAAP). Moreover, we provide original evidence that only patent data are able to provide plausible investor information in both bull-market
and bear-market periods, whereas accounting information overvalues intangible assets in bull markets and undervalues them in bears.
Original languageEnglish
Place of PublicationFrederiksberg
PublisherDRUID - Danish Research Unit for Industrial Dynamics
Number of pages40
ISBN (Print)8778731801
Publication statusPublished - 2005
Externally publishedYes
SeriesDRUID Working Paper

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