IDEAS home Printed from https://ideas.repec.org/p/sef/csefwp/750.html
   My bibliography  Save this paper

Mafia Infiltration and Ownership Dynamics in Italian Companies during Covid-19

Author

Abstract

We examine how government-mandated Covid-19 business closures impacted on the ownership structure of Italian private companies and investigate the mechanisms whereby the mafia infiltrates the legal economy during crises. Using a novel dataset tracking monthly shareholder changes, we show that an increase in the days of closure reduced the number of firms undergoing ownership changes, although significantly less so in provinces with strong mafia presence. This is especially true in the sectors that are historically prone to mafia infiltration and those more severely affected by the Covid-19 liquidity crisis, and in micro-firms, which tend to be more financially vulnerable.

Suggested Citation

  • Roberta De Luca & Rosalia Greco & Giovanni Immordino, 2025. "Mafia Infiltration and Ownership Dynamics in Italian Companies during Covid-19," CSEF Working Papers 750, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    • Handle: RePEc:sef:csefwp:750
    as

    Download full text from publisher

    File URL: https://www.csef.it/WP/wp750.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Giuseppe De Feo & Giacomo Davide De Luca, 2017. "Mafia in the Ballot Box," American Economic Journal: Economic Policy, American Economic Association, vol. 9(3), pages 134-167, August.
    2. Livio Ferrante & Stefania Fontana & Francesco Reito, 2021. "Mafia and bricks: unfair competition in local markets and policy interventions," Small Business Economics, Springer, vol. 56(4), pages 1461-1484, April.
    3. Scognamiglio, Annalisa, 2018. "When the mafia comes to town," European Journal of Political Economy, Elsevier, vol. 55(C), pages 573-590.
    4. Drago, Francesco & Calamunci, Francesca, 2020. "The economic impact of organized crime infiltration in the legal economy: evidence from the judicial administration of organize," CEPR Discussion Papers 14326, C.E.P.R. Discussion Papers.
    5. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2004. "The Role of Social Capital in Financial Development," American Economic Review, American Economic Association, vol. 94(3), pages 526-556, June.
    6. Marco Di Cataldo & Nicola Mastrorocco, 2022. "Organized Crime, Captured Politicians, and the Allocation of Public Resources [“Mafiaand Public Spending: Evidence on the Fiscal Multiplier from a Quasi-Experiment]," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 38(3), pages 774-839.
    7. Annamaria Nifo & Gaetano Vecchione, 2014. "Do Institutions Play a Role in Skilled Migration? The Case of Italy," Regional Studies, Taylor & Francis Journals, vol. 48(10), pages 1628-1649, October.
    8. Peri Giovanni, 2004. "Socio-Cultural Variables and Economic Success: Evidence from Italian Provinces 1951-1991," The B.E. Journal of Macroeconomics, De Gruyter, vol. 4(1), pages 1-36, September.
    9. Roberto Ganau & Andrés Rodríguez†Pose, 2018. "Industrial clusters, organized crime, and productivity growth in Italian SMEs," Journal of Regional Science, Wiley Blackwell, vol. 58(2), pages 363-385, March.
    10. Daron Acemoglu & Giuseppe De Feo & Giacomo Davide De Luca, 2020. "Weak States: Causes and Consequences of the Sicilian Mafia," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 87(2), pages 537-581.
    11. Baraldi, Anna Laura & Immordino, Giovanni & Stimolo, Marco, 2022. "Self-selecting candidates or compelling voters: How organized crime affects political selection," European Journal of Political Economy, Elsevier, vol. 71(C).
    12. Alberto Alesina & Salvatore Piccolo & Paolo Pinotti, 2019. "Organized Crime, Violence, and Politics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(2), pages 457-499.
    13. Pierre-Olivier Gourinchas & Şebnem Kalemli-Özcan & Veronika Penciakova & Nick Sander, 2025. "SME Failures Under Large Liquidity Shocks: an Application to the Covid-19 Crisis," Journal of the European Economic Association, European Economic Association, vol. 23(2), pages 431-480.
    14. Sebnem Kalemli-Ozcan & Pierre-Olivier Gourinchas & Veronika Penciakova & Nick Sander, 2020. "COVID-19 and SME Failures," IMF Working Papers 2020/207, International Monetary Fund.
    15. Gianmarco Daniele & Benny Geys, 2015. "Organised Crime, Institutions and Political Quality: Empirical Evidence from Italian Municipalities," Economic Journal, Royal Economic Society, vol. 125(586), pages 233-255, August.
    16. Francesca Calamunci & Francesco Drago, 2020. "The Economic Impact of Organized Crime Infiltration in the Legal Economy: Evidence from the Judicial Administration of Organized Crime Firms," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 6(2), pages 275-297, July.
    17. Daniele, Gianmarco & Dipoppa, Gemma, 2017. "Mafia, elections and violence against politicians," Journal of Public Economics, Elsevier, vol. 154(C), pages 10-33.
    18. Litterio Mirenda & Sauro Mocetti & Lucia Rizzica, 2022. "The Economic Effects of Mafia: Firm Level Evidence," American Economic Review, American Economic Association, vol. 112(8), pages 2748-2773, August.
    19. Marco Castelluccio & Lucia Rizzica, 2023. "Mafia infiltrations in times of crisis: Evidence from the Covid-19 shock," IFS Working Papers W23/28, Institute for Fiscal Studies.
    20. Francesco Calderoni, 2011. "Where is the mafia in Italy? Measuring the presence of the mafia across Italian provinces," Global Crime, Taylor & Francis Journals, vol. 12(1), pages 41-69, February.
    21. Buonanno, Paolo & Prarolo, Giovanni & Vanin, Paolo, 2016. "Organized crime and electoral outcomes. Evidence from Sicily at the turn of the XXI century," European Journal of Political Economy, Elsevier, vol. 41(C), pages 61-74.
    22. Paolo Pinotti, 2015. "The Economic Costs of Organised Crime: Evidence from Southern Italy," Economic Journal, Royal Economic Society, vol. 125(586), pages 203-232, August.
    23. Alessandra Fenizia & Raffaele Saggio, 2020. "Can the Mafia's Tentacles Be Severed? The Economic Effects of Removing Corrupt City Councils," Working Papers 2020-22, The George Washington University, Institute for International Economic Policy.
    24. Piemontese, Lavinia, 2023. "Uncovering illegal and underground economies: The case of mafia extortion racketeering," Journal of Public Economics, Elsevier, vol. 227(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francesca M. Calamunci & Livio Ferrante & Rossana Scebba, 2022. "Closed for mafia: Evidence from the removal of mafia firms on commercial property values," Journal of Regional Science, Wiley Blackwell, vol. 62(5), pages 1487-1511, November.
    2. Giovanni Bernardo & Irene Brunetti & Mehmet Pinar & Thanasis Stengos, 2021. "Measuring the presence of organized crime across Italian provinces: a sensitivity analysis," European Journal of Law and Economics, Springer, vol. 51(1), pages 31-95, February.
    3. Buonanno, Paolo & Ferrari, Irene & Saia, Alessandro, 2024. "All is not lost: Organized crime and social capital formation," Journal of Public Economics, Elsevier, vol. 240(C).
    4. Stefania Fontana & Giorgio d’Agostino, 2024. "Anti-mafia policies and public goods in Italy," Public Choice, Springer, vol. 198(3), pages 493-529, March.
    5. Francesca M. Calamunci & Livio Ferrante & Rossana Scebba & Gianpiero Torrisi, 2023. "Mafia doesn't live here anymore: Antimafia policies and housing prices," Journal of Regional Science, Wiley Blackwell, vol. 63(4), pages 1001-1025, September.
    6. Filippo Boeri & Marco Di Cataldo & Elisabetta Pietrostefani, 2022. "Localised Effects of Re-allocated Real Estate Mafia Assets," Working Papers 2022:10, Department of Economics, University of Venice "Ca' Foscari".
    7. Calamunci, Francesca Maria & Frattini, Federico Fabio, "undated". "When Crime Tears Communities Apart: Social Capital and Organised Crime," FEEM Working Papers 334350, Fondazione Eni Enrico Mattei (FEEM).
    8. Caglayan, Mustafa & Flamini, Alessandro & Jahanshahi, Babak, 2021. "Hindering human capital accumulation: A hidden cost of the silent mafia?," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 828-845.
    9. Sauro Mocetti & Lucia Rizzica, 2024. "Organized Crime in Italy: An Economic Analysis," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 10(3), pages 1339-1360, November.
    10. Li, Zhenjun & Cheng, Maoyong, 2024. "The impacts of anti-organized crime on asset prices: Evidence from China," Economic Systems, Elsevier, vol. 48(3).
    11. Campedelli, Gian Maria & Daniele, Gianmarco & Martinangeli, Andrea F.M. & Pinotti, Paolo, 2023. "Organized crime, violence and support for the state," Journal of Public Economics, Elsevier, vol. 228(C).
    12. Jaime Arellano-Bover & Marco De Simoni & Luigi Guiso & Rocco Macchiavello & Domenico J. Marchetti & Mounu Prem, 2024. "Mafias and Firms," CESifo Working Paper Series 11043, CESifo.
      • Arellano-Bover, Jaime & De Simoni, Marco & Guiso, Luigi & Macchiavello, Rocco & Marchetti, Domenico J. & Prem, Mounu, 2024. "Mafias and Firms," SocArXiv sr6ep, Center for Open Science.
      • Arellano-Bover, Jaime & De Simoni, Marco & Guiso, Luigi & Macchiavello, Rocco & Marchetti, Domenico J. & Prem, Mounu, 2024. "Mafias and Firms," IZA Discussion Papers 16893, Institute of Labor Economics (IZA).
      • De Simoni, Marco & Guiso, Luigi & Macchiavello, Rocco & Marchetti, Domenico J. & Prem, Mounu, 2024. "Mafias and Firms," CEPR Discussion Papers 18982, C.E.P.R. Discussion Papers.
    13. Maoyong Cheng & Zhenjun Li, 2023. "Public governance and firm total factor productivity: Evidence from a quasi‐natural event in China," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 31(3), pages 683-719, July.
    14. Baraldi, Anna Laura & Papagni, Erasmo & Stimolo, Marco, 2024. "Neutralizing the tentacles of organized crime. Assessment of the impact of an anti-crime measure on mafia violence in Italy," Journal of Economic Behavior & Organization, Elsevier, vol. 223(C), pages 57-85.
    15. repec:osf:socarx:sr6ep_v1 is not listed on IDEAS
    16. Forgione, Antonio Fabio & Migliardo, Carlo, 2023. "Mafia risk perception: Evaluating the effect of organized crime on firm technical efficiency and investment proclivity," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    17. Paolo Pinotti, 0. "The Credibility Revolution in the Empirical Analysis of Crime," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 0, pages 1-14.
    18. Lin, Xifen & Wu, Wanqiang & Lan, Huanqi & Ma, Yong, 2024. "The impact of anti-organized crime on business environment: Evidence from China's anti-Mafia campaign," International Review of Economics & Finance, Elsevier, vol. 95(C).
    19. Scognamiglio, Annalisa, 2018. "When the mafia comes to town," European Journal of Political Economy, Elsevier, vol. 55(C), pages 573-590.
    20. Baraldi, Anna Laura & Immordino, Giovanni & Stimolo, Marco, 2022. "Self-selecting candidates or compelling voters: How organized crime affects political selection," European Journal of Political Economy, Elsevier, vol. 71(C).
    21. Daron Acemoglu & Giuseppe De Feo & Giacomo Davide De Luca, 2020. "Weak States: Causes and Consequences of the Sicilian Mafia," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 87(2), pages 537-581.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sef:csefwp:750. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Maria Carannante (email available below). General contact details of provider: https://edirc.repec.org/data/cssalit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.