Businesses Are More Profitable And Innovative In States With Legal Marijuana, Study Finds

Businesses Are More Profitable And Innovative In States With Legal Marijuana, Study Finds
Businesses Are More Profitable And Innovative In States With Legal Marijuana, Study Finds
Business by Best Picko is licensed under Attribution 2.0 Generic

To investigate the impact legalization has on the economy, researchers at the University of Iowa analyzed 9,810 corporations between 1991 and 2017, finding “a multitude of positive effects” after a state enacts medical marijuana laws.

“Firms headquartered in marijuana-legalizing states receive higher market valuations, earn higher abnormal stock returns, improve employee productivity, and increase innovation,” the authors said.

The study, which was reviewed by Marijuana Moment but has yet to be published, found that having cannabis laws on the books can unleash the previously untapped potential of employees and helps companies attract new talent.

Corporations “become more productive and hire more productive human capital from out of state after the passage of the law,” the authors wrote.
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