Political Ideology and Corporate Innovation: Evidence from the Expansion of a Local TV Network

57 Pages Posted: 22 Jun 2021 Last revised: 8 Apr 2022

See all articles by Yuqi Gu

Yuqi Gu

Willamette University Atkinson Graduate School of Management

Mahsa Kaviani

University of Delaware

Lily Li

Villanova University

Hosein Maleki

Florida State University - College of Business

Connie X. Mao

Temple University - Fox School of Business and Management; Temple University - Department of Finance

Date Written: May 1, 2021

Abstract

We examine whether political ideology affects corporate innovation using the staggered expansion of the largest conservative media network in the U.S., Sinclair Broadcasting Group. Upon Sinclair entry into a TV market, the local firms' innovation output falls. The quality of new patents as measured by the number of their citations, originality, and market-based economic value deteriorates significantly. The effect is predominantly driven by the departure of innovative talent from affected firms. Consistent with this mechanism, we find larger effects in states with higher human capital mobility, measured by weaker state-wide enforceability of non-competition laws.

Keywords: media influence, political ideology, innovation, human capital mobility

JEL Classification: D72, J24, L82, J61, O31

Suggested Citation

Gu, Yuqi and Kaviani, Mahsa and Li, Lily Yuanzhi and Maleki, Hosein and Mao, Connie X., Political Ideology and Corporate Innovation: Evidence from the Expansion of a Local TV Network (May 1, 2021). Fox School of Business Research Paper Forthcoming, Available at SSRN: https://ssrn.com/abstract=3867503 or http://dx.doi.org/10.2139/ssrn.3867503

Yuqi Gu

Willamette University Atkinson Graduate School of Management ( email )

Salem, OR 97301
United States

Mahsa Kaviani

University of Delaware ( email )

20 Orchard Rd, Newark, DE
Newark, DE 19716
United States

Lily Yuanzhi Li

Villanova University ( email )

United States

Hosein Maleki (Contact Author)

Florida State University - College of Business ( email )

423 Rovetta Business Building
Tallahassee, FL 32306-1110
United States

Connie X. Mao

Temple University - Fox School of Business and Management ( email )

416 Alter Hall
Philadelphia, PA 19122
United States
215-204-4895 (Phone)
215-204-1697 (Fax)

Temple University - Department of Finance ( email )

Fox School of Business and Management
Philadelphia, PA 19122
United States
215-204-4895 (Phone)
215-204-1697 (Fax)

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