The Mist of corporate innovation

Ya Ling Chiu; Jinbo Luo; Brian L. Boscaljon

doi:10.1016/j.iref.2024.04.039

The Mist of corporate innovation

Ya Ling Chiu, Jinbo Luo, Brian L. Boscaljon

Black School of Business (Behrend)

Research output: Contribution to journal › Article › peer-review

Abstract

This study investigates the impact of air pollution on corporate innovation. Using the satellite generated Particulate Matter 2.5 concentration data in 390 cities in China over the period of 2000–2015, we find that severe air pollution (haze pollution) in a region may deteriorate the innovative performance of companies in the same region. Our results are robust to different air pollution and innovation measures. We employ both difference in differences and instrumental variable approaches to alleviate potential endogeneity concerns. In addition, we identify two possible mechanisms, reduced funds availability and loss of innovative talents, to explain the negative impact of air pollution on innovation.

Original language	English (US)
Pages (from-to)	602-624
Number of pages	23
Journal	International Review of Economics and Finance
Volume	93
DOIs	https://doi.org/10.1016/j.iref.2024.04.039
State	Published - Jun 2024

All Science Journal Classification (ASJC) codes

Finance
Economics and Econometrics

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.iref.2024.04.039

Cite this

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title = "The Mist of corporate innovation",

abstract = "This study investigates the impact of air pollution on corporate innovation. Using the satellite generated Particulate Matter 2.5 concentration data in 390 cities in China over the period of 2000–2015, we find that severe air pollution (haze pollution) in a region may deteriorate the innovative performance of companies in the same region. Our results are robust to different air pollution and innovation measures. We employ both difference in differences and instrumental variable approaches to alleviate potential endogeneity concerns. In addition, we identify two possible mechanisms, reduced funds availability and loss of innovative talents, to explain the negative impact of air pollution on innovation.",

author = "Chiu, {Ya Ling} and Jinbo Luo and Boscaljon, {Brian L.}",

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doi = "10.1016/j.iref.2024.04.039",

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AU - Luo, Jinbo

AU - Boscaljon, Brian L.

PY - 2024/6

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N2 - This study investigates the impact of air pollution on corporate innovation. Using the satellite generated Particulate Matter 2.5 concentration data in 390 cities in China over the period of 2000–2015, we find that severe air pollution (haze pollution) in a region may deteriorate the innovative performance of companies in the same region. Our results are robust to different air pollution and innovation measures. We employ both difference in differences and instrumental variable approaches to alleviate potential endogeneity concerns. In addition, we identify two possible mechanisms, reduced funds availability and loss of innovative talents, to explain the negative impact of air pollution on innovation.

AB - This study investigates the impact of air pollution on corporate innovation. Using the satellite generated Particulate Matter 2.5 concentration data in 390 cities in China over the period of 2000–2015, we find that severe air pollution (haze pollution) in a region may deteriorate the innovative performance of companies in the same region. Our results are robust to different air pollution and innovation measures. We employ both difference in differences and instrumental variable approaches to alleviate potential endogeneity concerns. In addition, we identify two possible mechanisms, reduced funds availability and loss of innovative talents, to explain the negative impact of air pollution on innovation.

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JO - International Review of Economics and Finance

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The Mist of corporate innovation

Abstract

All Science Journal Classification (ASJC) codes

UN SDGs

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