Jiaqing “Jack” Lu

There has been no previous research on the link between the license market and the stock market. Are the two markets integrated or coupled such that the valuation of the same portfolio of intangible assets is consistent across markets? This study tries to fill the research gap. Based on the data of royalty rate and Tobin’s q across 14 industries, the analysis demonstrates that the two markets are partially integrated, and that the valuations of intangible assets by the two markets are highly related, after a dummy variable is introduced to control two outlying sectors