In the Mood for Creativity: Weather-Induced Mood, Inventor Performance, and Firm Value

62 Pages Posted: 24 May 2016 Last revised: 27 Jul 2018

See all articles by Yangyang Chen

Yangyang Chen

Hong Kong Polytechnic University - Faculty of Business

Po-Hsuan Hsu

National Tsing Hua University - Department of Quantitative Finance

Edward Podolski

Deakin University; Financial Research Network (FIRN)

Madhu Veeraraghavan

T.A. PAI Management Institute, Finance Area

Date Written: July 18, 2018

Abstract

Using inventors employed by U.S. publicly listed firms, we examine the relation between mood and inventor performance. Utilizing sunshine exposure as a time-varying proxy for inventor mood, we show that good mood is associated with the creation of more valuable patents. When aggregated at the firm level, the collective mood of corporate inventors has significant implications for corporate innovation and firm value. Improved creativity, initiative at work, and strategic focus are identified as the mechanisms through which good mood stimulates inventor performance. Our findings contribute to a growing body of literature highlighting the real effects of mood on economic outcomes.

Keywords: Mood; Inventor performance; innovation; creativity

JEL Classification: G39, J33, M52, O31

Suggested Citation

Chen, Yangyang and Hsu, Po-Hsuan and Podolski, Edward and Veeraraghavan, Madhu, In the Mood for Creativity: Weather-Induced Mood, Inventor Performance, and Firm Value (July 18, 2018). Available at SSRN: https://ssrn.com/abstract=2782918 or http://dx.doi.org/10.2139/ssrn.2782918

Yangyang Chen (Contact Author)

Hong Kong Polytechnic University - Faculty of Business ( email )

9/F, Li Ka Shing Tower
The Hong Kong Polytechnic University
Hong Kong, Hung Hom, Kowloon M923
China

Po-Hsuan Hsu

National Tsing Hua University - Department of Quantitative Finance ( email )

101, Section 2, Kuang-Fu Road
Hsinchu, Taiwan 300
China

Edward Podolski

Deakin University ( email )

221 Burwood Highway
Burwood, Victoria 3125
Australia

Financial Research Network (FIRN) ( email )

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

Madhu Veeraraghavan

T.A. PAI Management Institute, Finance Area ( email )

Bangalore
Manipal, Karnataka 576104
India
+91-820-2701030 (Phone)

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