The collection of YK value papers

The report of the research group in which our company participated, published on the website of the Ministry of Economy, Trade and Industry.

 
The FY2008 Industrial Technology Survey Report
" Research on Facilitating Fundraising through Technology Evaluation(Japanese only)"
The results of data analysis targeting approximately 7,000 small and medium-sized enterprises (SMEs) have revealed that the evaluation of technological strength utilizing patent information, specifically the patent value evaluation using the YKS method, can serve as an early indicator for predicting the future growth potential and bankruptcy risk of SMEs. This finding suggests that the evaluation based on the YKS method is expected to contribute to the efforts of financial institutions and others to actively assess the technological capabilities of SMEs."
 

FY2008 Industrial Technology Survey Report
" Research on Corporate Venturing(Japanese only)"
The FY2008 Industrial Technology Survey Report," "Research on Corporate Venturing," highlights the situation where research and development investment in private companies does not lead to enhanced profitability and where technological assets remain unused within the organization. It emphasizes the need to strengthen Management of Technology (MOT). This report conducts the development and analysis of benchmark indicators for the 'C: check' phase of the MOT's PDCA cycle. Within this context, the YKS method is incorporated as a qualitative evaluation indicator for patent assets. As a result, it has received a certain level of recognition as an indicator contributing to the visualization of technological asset value.

The paper utilizing our firm's patent value evaluation method is featured on the Bank of Japan's website.

" Estimation of default rates for companies considering intangible assets(Japanese only)"(Financial Institutions Bureau Saiki Tsuchiya,Shinichi Nishioka)
　This paper discusses the relationship between default rates, which serve as an indicator of corporate creditworthiness, and the technological capabilities represented by YK values. As a result, it quantitatively demonstrates the involvement of technological capabilities, an intangible asset, in default rates, and concludes that more accurate estimations can be achieved compared to estimations based solely on financial information.
 
 

The verification results using our firm's method are featured in reports issued by the Bank of Japan.

" Financial System Report"( in the Full document on pages 29 and 30, and in the Summary on 9 pages)
　When providing financing to early-stage companies such as startups and ventures, it is necessary to assess the business's growth potential and risks. However, relying solely on tangible assets to perform this evaluation proves challenging. Therefore, an attempt is being made to incorporate intangible assets, such as technological capabilities using methods like the YKS approach, to evaluate a company's profitability. As a result, it has been concluded that a company's technological capabilities possess significant explanatory power for future growth rates and default rates.

A paper on the YKS method has been published

A paper on our YKS method has been published in the Monthly Capital Market, Issue No. 331, titled 'Exploring New Stock Investment Metrics in the Era of Financial Easing.' Please click here to view it.(Japanese only)

In this paper, we investigate the relationship between the YK value and future financial indicators such as revenue and profitability, and examine the mechanism by which the YK value possesses predictive capabilities for stock returns. We first provide an overview of the YK value and then verify its relationship with future financial indicators. Additionally, we validate whether the YK value exhibits predictive power for stock returns using recent data, employing a methodology distinct from that of Mizuta, Kudo, and Kobayashi [2009].

A paper on the YKS method has been published

The paper titled "Empirical Analysis on the Value Relevance of Patent Information in the Stock Market Using YK Value," co-authored by Mr. Ide from Nissay Research Institute and Professor Takehara from Waseda University Graduate School of Business and Management, has been published as the lead article in the journal "Modern Finance" (an academic journal with peer-reviewed articles on finance and investment jointly published by the Japanese Finance Association and MPT Forum).
The paper states, "In this study, we conducted an analysis using not only the number of patents granted and the number of citations but also an indicator of patent quality that focuses on exclusive and proprietary technology utilization rights. As a result, we confirmed a statistically significant positive correlation between patent information and firm value and profitability."

A paper on the YKS method has been published

　The paper titled"Japanese patent index and stock performance" utilizing the YK value, authored by Professor Takao Kobayashi from Aoyama Gakuin University Graduate School, Mr. Yasuhiro Iwanaga from Sumitomo Mitsui Trust Bank, and Mr. Hideaki Kudo from Nomura Asset Management Co., Ltd., has been published in the English journal "The Journal of Financial Perspectives" (pages 151-162 in the magazine).
 
　In this paper, we focus on an evaluation index using the YKS method as a unique Japanese indicator, rather than the patent valuation index advocated in the United States.
Based on that, we clarify the relationship between a company's performance and the technological competitiveness indicated by this index.
Specifically, we discuss how this index can predict stock prices. According to our analysis, by using 1) the patent value evaluation index, 2) research and development investment, and 3) a simulation of stock price prediction using both 1) and 2), we found that 3) demonstrated the highest predictive power and achieved the best performance, with an average annual return reaching as high as 11.5%.