Abstract
Do Firms Get High? The Impact of Marijuana Legalization on Firm Performance, Corporate Innovation, and Entrepreneurial Activity
06/25/2019
Abstract
We find that state-level marijuana legalization has a positive financial impact on firms, likely by affecting firms' human capital. Firms headquartered in marijuana-legalizing states receive higher market valuations, earn higher abnormal stock returns, improve employee productivity, and increase innovation. Exploiting firm level inventor data, we directly test the human capital channel and find that post legalization, firms retain inventors that become more productive and recruit more innovative talents from out of state. We also find that marijuana-legalizing states experience an increase in the number of new startups and venture capital investments
Details
- Title: Subtitle
- Do Firms Get High? The Impact of Marijuana Legalization on Firm Performance, Corporate Innovation, and Entrepreneurial Activity
- Creators
- Jue WangShagun PantTong Yao
- Resource Type
- Abstract
- Publisher
- SSRN
- Language
- English
- Date published
- 06/25/2019
- Academic Unit
- Finance
- Record Identifier
- 9984380639102771
Metrics
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