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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.
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.