Emotions and Inventor Productivity: Evidence from Terrorist Attacks

48 Pages Posted: 3 Feb 2019 Last revised: 9 Sep 2020

See all articles by Yue Luo

Yue Luo

Hong Kong Polytechnic University, School of Accounting and Finance, Students

Yangyang Chen

City University of Hong Kong (CityUHK) - Department of Accountancy

Ji-Chai Lin

Hong Kong PolyU

Date Written: September 9, 2020

Abstract

We examine whether the emotional shocks associated with terrorist attacks affect local inventors’ productivity. We find that high-fatality attacks make inventors less innovative, and low-fatality attacks make them more innovative. Inventors living in high risk-taking environments have greater increase in productivity following low-fatality attacks, while less decrease in productivity following high-fatality attacks. Further, the effect of terrorist attacks on inventor productivity mainly comes from exploratory innovation which involves more risks. Inventors affected by high-fatality attacks are also more likely to move to places without any significant terrorist attack history, but there is no such effect for low-fatality attacks.

Keywords: Terrorist attacks; Emotion; Inventor productivity

JEL Classification: G39, O31

Suggested Citation

Luo, Yue and Chen, Yangyang and Lin, Ji-Chai, Emotions and Inventor Productivity: Evidence from Terrorist Attacks (September 9, 2020). Available at SSRN: https://ssrn.com/abstract=3321554 or http://dx.doi.org/10.2139/ssrn.3321554

Yue Luo (Contact Author)

Hong Kong Polytechnic University, School of Accounting and Finance, Students ( email )

Hung Hom
Kowloon
Hong Kong

Yangyang Chen

City University of Hong Kong (CityUHK) - Department of Accountancy ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong
China

Ji-Chai Lin

Hong Kong PolyU ( email )

M715, Li Ka Shing Tower
Hung Hom, Kowloon
China

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