TY - JOUR
T1 - Natural disasters and corporate innovation
AU - Le, Huong
AU - Nguyen, Tung
AU - Gregoriou, Andros
AU - Healy, Jerome
PY - 2023/4/27
Y1 - 2023/4/27
N2 - We examine how natural disasters affect corporate innovation. Using a comprehensive sample of U.S. firms and inventors, we find that natural disasters significantly drop innovation quantity and quality. The results are robust to include a broad set of regional characteristics, matching analysis, and alternative proxies for innovation. These effects persist for up to three years after the disaster. We also provide suggestive evidence that financial constraints due to natural disasters give firms less incentive to innovate. Further analysis shows that natural disasters have impacts on inventor relocation, innovation productivity, and innovation risk.
AB - We examine how natural disasters affect corporate innovation. Using a comprehensive sample of U.S. firms and inventors, we find that natural disasters significantly drop innovation quantity and quality. The results are robust to include a broad set of regional characteristics, matching analysis, and alternative proxies for innovation. These effects persist for up to three years after the disaster. We also provide suggestive evidence that financial constraints due to natural disasters give firms less incentive to innovate. Further analysis shows that natural disasters have impacts on inventor relocation, innovation productivity, and innovation risk.
KW - Uncertainty
KW - natural disasters
KW - corporate innovation;
KW - employee safety
UR - http://www.scopus.com/inward/record.url?scp=85158896643&partnerID=8YFLogxK
U2 - 10.1080/1351847X.2023.2199938
DO - 10.1080/1351847X.2023.2199938
M3 - Article
SP - 1
EP - 29
JO - European Journal of Finance
JF - European Journal of Finance
SN - 1351-847X
ER -