profmvr

Prof. (Dr) Madhu Veeraraghavan – Publications

A Comprehensive Record of Peer-Reviewed Research and Global Academic Thought Leadership.

Published: September 2024

In the mood for creativity: Sunshine-induced mood, inventor performance, and firm value

We investigate how firm value may be related to emotional and mental states of innovative workers via the innovation channel. By analyzing a comprehensive inventor-level dataset, we discover that the economic value inventors produce for their firms through their patenting activity is positively associated with their sunshine-induced mood. This augmentation in patent value is not due to a surge in the quantity of patents, but rather to the heightened significance and influence of the created inventions. These inventor-level observations aggregate to the firm level. The observed sunshine-enhanced effect is of a magnitude comparable to other primary behavioral drivers of innovation outcomes, such as CEO overconfidence and CEO thrill-seeking tendencies. Our research underscores the significance of the emotional and psychological states of innovative personnel that has implications for managers and shareholders.

Publication Details:

Published: September 2024

Volume: 78

Article Number: 101527

Journal: Journal of Empirical Finance

Publication Status: Published

Scopus Citations: 3

Chen, Y., Hsu, P. H., Podolski, E. J., & Veeraraghavan, M. (2024). In the mood for creativity: Sunshine-induced mood, inventor performance, and firm value. Journal of Empirical Finance, 78, Article 101527.