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Media, inventors, and corporate innovation

Author

Listed:
  • Gu, Yuqi
  • Kaviani, Mahsa
  • Li, Lily
  • Maleki, Hosein
  • Mao, Connie X.

Abstract

We examine the impact of Sinclair Broadcast Group, the largest conservative media network in the US local TV markets, on corporate innovation following its staggered expansion across the country. We find a significant reduction in innovation output two to three years after Sinclair entry. As a larger proportion of inventors self-identify as left-leaning, we find that the effect runs through two mutually non-exclusive channels: the inventor productivity channel and the talent replacement channel. Inventors become less innovative when they stay in Sinclair-exposed firms, and firms face challenges replacing departed talent upon the local ideology shock induced by Sinclair.

Suggested Citation

  • Gu, Yuqi & Kaviani, Mahsa & Li, Lily & Maleki, Hosein & Mao, Connie X., 2025. "Media, inventors, and corporate innovation," Journal of Empirical Finance, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:empfin:v:84:y:2025:i:c:s0927539825000866
    DOI: 10.1016/j.jempfin.2025.101664
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    Keywords

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    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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