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Do Firms Get High? The Impact of Medical Marijuana Legalization on Firm Performance and Corporate Innovation

Shagun Pant et al.

Financial Management2026https://doi.org/10.1111/fima.70037article
AJG 3ABDC A*
Weight
0.50

Abstract

We find that state‐level medical marijuana legalization has a positive financial impact on firms, likely by affecting firms’ human capital. Firms headquartered in marijuana‐legalizing states receive higher market valuations, improve employee productivity, and increase innovation. Exploiting inventor mobility data, we directly test the human capital channel and find that states legalizing marijuana are able to retain inventors who become more productive and recruit more innovative talents from out of state.

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https://doi.org/https://doi.org/10.1111/fima.70037

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@article{shagun2026,
  title        = {{Do Firms Get High? The Impact of Medical Marijuana Legalization on Firm Performance and Corporate Innovation}},
  author       = {Shagun Pant et al.},
  journal      = {Financial Management},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1111/fima.70037},
}

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Do Firms Get High? The Impact of Medical Marijuana Legalization on Firm Performance and Corporate Innovation

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.