A new GLO Discussion Paper finds that Italian firms managed by a CEO that belongs to a family with past emigration experience tend to perform better and to be more productive.

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GLO Discussion Paper No. 830, 2021

Ancestors, inter-generational transmission of attitudes, and corporate performance: Evidence from the Italian Mass Migration – Download PDF
by Florio, Erminia & Manfredonia, Stefano

GLO Affiliate Erminia Florio

Author Abstract: We study the effect of the attitudes of a CEO’s ancestors on firm performance. To do so, we collect detailed information on emigrants from Italian municipalities during the Age of Mass Migration (1892-1924) from Ellis Island ships lists and use emigration experience as a proxy for ancestors’ risk propensity. We adopt an epidemiological approach complemented with an instrumental variables strategy and find that Italian firms managed by a CEO that belongs to a family with past emigration experience tend to perform better and to be more productive. In line with an inter-generational transmission of attitudes hypothesis, we show a positive relationship between the emigration experience of a CEO’s ancestors and alternative measures of corporate risk-taking. The attitudes of a CEO’s ancestors have as well consequences on firm solvency and on the cost of capital.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers). Complete list of all GLO DPs – downloadable for free.

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