How Does Stock Market Respond to IP related Announcement? A Japanese Evidence

摘要

The fact that financial numbers lose its explanatory power over stock price gradually casts great doubts on the relevancy of regulatory financial reporting. In response to the criticism reflecting the reality, many related agencies and parties try to improve investment relevancy of financial reporting and disclosure, especially in intellectual property area. For the characteristics of it complicating to recognize and measure economically, however, controversies over desirable way for intellectual property disclosure do not seem to converge in international context. Japanese government intensively commits itself to resolve the problem and propose guidelines for the reporting. Our tentative analysis cannot offer clear cut evidence to support the usefulness of such disclosure in stock market and suggests current Japanese IP reporting need to be improved.