IDEAS home Printed from https://ideas.repec.org/p/zbw/glodps/830.html
   My bibliography  Save this paper

Ancestors, inter-generational transmission of attitudes, and corporate performance: Evidence from the Italian Mass Migration

Author

Listed:
  • Florio, Erminia
  • Manfredonia, Stefano

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.

Suggested Citation

  • Florio, Erminia & Manfredonia, Stefano, 2021. "Ancestors, inter-generational transmission of attitudes, and corporate performance: Evidence from the Italian Mass Migration," GLO Discussion Paper Series 830, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:830
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/233600/1/GLO-DP-0830.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Thomas Chaney, 2014. "The Network Structure of International Trade," American Economic Review, American Economic Association, vol. 104(11), pages 3600-3634, November.
    2. Stefano Gagliarducci & Marco Manacorda, 2020. "Politics in the Family: Nepotism and the Hiring Decisions of Italian Firms," American Economic Journal: Applied Economics, American Economic Association, vol. 12(2), pages 67-95, April.
    3. Christian Dustmann, 2008. "Return Migration, Investment in Children, and Intergenerational Mobility: Comparing Sons of Foreign- and Native-Born Fathers," Journal of Human Resources, University of Wisconsin Press, vol. 43(2), pages 299-324.
    4. Akgüç, Mehtap & Liu, Xingfei & Tani, Massimiliano & Zimmermann, Klaus F., 2016. "Risk attitudes and migration," China Economic Review, Elsevier, vol. 37(C), pages 166-176.
    5. repec:hal:spmain:info:hdl:2441/24ib66dtho86rp6keb6eqd20hr is not listed on IDEAS
    6. Heitor Pellegrina & Sebastian Sotelo, 2019. "Migration, Specialization and Trade: Evidence from the Brazilian March to the West," 2019 Meeting Papers 863, Society for Economic Dynamics.
    7. Raquel Fernández & Alessandra Fogli, 2006. "Fertility: The Role of Culture and Family Experience," Journal of the European Economic Association, MIT Press, vol. 4(2-3), pages 552-561, 04-05.
    8. repec:hal:spmain:info:hdl:2441/4j5snkuat19kma9diah5p0g5eq is not listed on IDEAS
    9. Yihui Pan & Stephan Siegel & Tracy Yue Wang, 2020. "The Cultural Origin of CEOs’ Attitudes toward Uncertainty: Evidence from Corporate Acquisitions," The Review of Financial Studies, Society for Financial Studies, vol. 33(7), pages 2977-3030.
    10. Guglielmo Barone & Sauro Mocetti, 2021. "Intergenerational Mobility in the Very Long Run: Florence 1427–2011 [Intergenerational Economic Mobility in the United States, 1940 to 2000]," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 88(4), pages 1863-1891.
    11. Andy Feng & Anna Valero, 2020. "Skill-Biased Management: Evidence from Manufacturing Firms," The Economic Journal, Royal Economic Society, vol. 130(628), pages 1057-1080.
    12. Sunder, Jayanthi & Sunder, Shyam V. & Zhang, Jingjing, 2017. "Pilot CEOs and corporate innovation," Journal of Financial Economics, Elsevier, vol. 123(1), pages 209-224.
    13. Mounir Karadja & Erik Prawitz, 2019. "Exit, Voice, and Political Change: Evidence from Swedish Mass Migration to the United States," Journal of Political Economy, University of Chicago Press, vol. 127(4), pages 1864-1925.
    14. Kalena E. Cortes, 2004. "Are Refugees Different from Economic Immigrants? Some Empirical Evidence on the Heterogeneity of Immigrant Groups in the United States," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 465-480, May.
    15. DeBacker, Jason & Heim, Bradley T. & Tran, Anh, 2015. "Importing corruption culture from overseas: Evidence from corporate tax evasion in the United States," Journal of Financial Economics, Elsevier, vol. 117(1), pages 122-138.
    16. Maria Zumbuehl & Thomas Dohmen & Gerard Pfann, 2021. "Parental Involvement and the Intergenerational Transmission of Economic Preferences, Attitudes and Personality Traits," The Economic Journal, Royal Economic Society, vol. 131(638), pages 2642-2670.
    17. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2012. "The Intergenerational Transmission of Risk and Trust Attitudes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(2), pages 645-677.
    18. Nicholas Bloom & Raffaella Sadun & John Van Reenen, 2012. "Americans Do IT Better: US Multinationals and the Productivity Miracle," American Economic Review, American Economic Association, vol. 102(1), pages 167-201, February.
    19. Christian Dustmann & Francesco Fasani & Xin Meng & Luigi Minale, 2023. "Risk Attitudes and Household Migration Decisions," Journal of Human Resources, University of Wisconsin Press, vol. 58(1), pages 112-145.
    20. Romain Duval & Gee Hee Hong & Yannick Timmer & Philip Strahan, 2020. "Financial Frictions and the Great Productivity Slowdown," The Review of Financial Studies, Society for Financial Studies, vol. 33(2), pages 475-503.
    21. Michela Giorcelli, 2019. "The Long-Term Effects of Management and Technology Transfers," American Economic Review, American Economic Association, vol. 109(1), pages 121-152, January.
    22. Ran Abramitzky & Leah Boustan, 2017. "Immigration in American Economic History," Journal of Economic Literature, American Economic Association, vol. 55(4), pages 1311-1345, December.
    23. David A. Jaeger & Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde & Holger Bonin, 2010. "Direct Evidence on Risk Attitudes and Migration," The Review of Economics and Statistics, MIT Press, vol. 92(3), pages 684-689, August.
    24. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2006. "Does Culture Affect Economic Outcomes?," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 23-48, Spring.
    25. Matthias Doepke & Fabrizio Zilibotti, 2008. "Occupational Choice and the Spirit of Capitalism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(2), pages 747-793.
    26. Dustmann, Christian, 1997. "Return migration, uncertainty and precautionary savings," Journal of Development Economics, Elsevier, vol. 52(2), pages 295-316, April.
    27. Spitzer, Yannay & Zimran, Ariell, 2018. "Migrant self-selection: Anthropometric evidence from the mass migration of Italians to the United States, 1907–1925," Journal of Development Economics, Elsevier, vol. 134(C), pages 226-247.
    28. Lauren Cohen & Umit G. Gurun & Christopher Malloy, 2017. "Resident Networks and Corporate Connections: Evidence from World War II Internment Camps," Journal of Finance, American Finance Association, vol. 72(1), pages 207-248, February.
    29. Peter Arcidiacono & Patrick Bayer & Aurel Hizmo, 2010. "Beyond Signaling and Human Capital: Education and the Revelation of Ability," American Economic Journal: Applied Economics, American Economic Association, vol. 2(4), pages 76-104, October.
    30. Nikolai Roussanov & Pavel Savor, 2014. "Marriage and Managers' Attitudes to Risk," Management Science, INFORMS, vol. 60(10), pages 2496-2508, October.
    31. Thomas Chaney, 2014. "The Network Structure of International Trade," Post-Print hal-03579668, HAL.
    32. repec:hal:spmain:info:hdl:2441/7an8r1ubqs93caeqs80puld0tp is not listed on IDEAS
    33. Cortes, Kalena E., 2004. "Are Refugees Different from Economic Immigrants? Some Empirical Evidence on the Heterogeneity of Immigrant Groups in the United States," IZA Discussion Papers 1063, Institute of Labor Economics (IZA).
    34. Biggerstaff, Lee & Cicero, David C. & Puckett, Andy, 2015. "Suspect CEOs, unethical culture, and corporate misbehavior," Journal of Financial Economics, Elsevier, vol. 117(1), pages 98-121.
    35. Patrick J. Bayer & Peter Arcidiacono & Aurel Hizmo, 2010. "Web Appendix: Beyond Signaling and Human Capital: Education and the Revelation of Ability," Working Papers 10-52, Duke University, Department of Economics.
    36. Ran Abramitzky & Leah Platt Boustan & Katherine Eriksson, 2012. "Europe's Tired, Poor, Huddled Masses: Self-Selection and Economic Outcomes in the Age of Mass Migration," American Economic Review, American Economic Association, vol. 102(5), pages 1832-1856, August.
    37. David Andersson & Mounir Karadja & Erik Prawitz, 2022. "Mass Migration and Technological Change," Journal of the European Economic Association, European Economic Association, vol. 20(5), pages 1859-1896.
    38. Alberto Bisin & Giorgio Topa & Thierry Verdier, 2004. "Religious Intermarriage and Socialization in the United States," Journal of Political Economy, University of Chicago Press, vol. 112(3), pages 615-664, June.
    39. Marianne Bertrand & Antoinette Schoar, 2003. "Managing with Style: The Effect of Managers on Firm Policies," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(4), pages 1169-1208.
    40. Tabellini, Marco, 2020. "Gifts of the Immigrants, Woes of the Natives: Lessons from the Age of Mass Migration," CEPR Discussion Papers 14317, C.E.P.R. Discussion Papers.
    41. Bandiera, Oriana & Rasul, Imran & Viarengo, Martina, 2013. "The Making of Modern America: Migratory Flows in the Age of Mass Migration," Journal of Development Economics, Elsevier, vol. 102(C), pages 23-47.
    42. Erminia Florio, 2019. "Are We in The Same Boat? The Legacy of Historical Emigration on Attitudes towards Immigrants," CEIS Research Paper 478, Tor Vergata University, CEIS, revised 12 Nov 2021.
    43. Hatton, Timothy J. & Williamson, Jeffrey G., 1998. "The Age of Mass Migration: Causes and Economic Impact," OUP Catalogue, Oxford University Press, number 9780195116519.
    44. Walter F. Willcox, 1929. "International Migrations, Volume I: Statistics," NBER Books, National Bureau of Economic Research, Inc, number fere29-1, March.
    45. Walter F. Willcox, 1929. "Statistics of Migrations, National Tables, United States," NBER Chapters, in: International Migrations, Volume I: Statistics, pages 372-498, National Bureau of Economic Research, Inc.
    46. Gennaro Bernile & Vineet Bhagwat & P. Raghavendra Rau, 2017. "What Doesn't Kill You Will Only Make You More Risk-Loving: Early-Life Disasters and CEO Behavior," Journal of Finance, American Finance Association, vol. 72(1), pages 167-206, February.
    47. Marco Tabellini, 2020. "Gifts of the Immigrants, Woes of the Natives: Lessons from the Age of Mass Migration," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 87(1), pages 454-486.
    48. Ulrike Malmendier & Geoffrey Tate & Jon Yan, 2011. "Overconfidence and Early‐Life Experiences: The Effect of Managerial Traits on Corporate Financial Policies," Journal of Finance, American Finance Association, vol. 66(5), pages 1687-1733, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hasan, Iftekhar & Manfredonia, Stefano & Noth, Felix, 2021. "Cultural resilience, religion, and economic recovery: Evidence from the 2005 hurricane season," IWH Discussion Papers 9/2021, Halle Institute for Economic Research (IWH).

    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. Gagliarducci, Stefano & Tabellini, Marco, 2021. "Faith and Assimilation: Italian Immigrants in the US," IZA Discussion Papers 14567, Institute of Labor Economics (IZA).
    2. Erminia Florio, 2019. "Are We in The Same Boat? The Legacy of Historical Emigration on Attitudes towards Immigrants," CEIS Research Paper 478, Tor Vergata University, CEIS, revised 12 Nov 2021.
    3. Giuliano, Paola & Tabellini, Marco, 2020. "The Seeds of Ideology: Historical Immigration and Political Preferences in the United States," CEPR Discussion Papers 14784, C.E.P.R. Discussion Papers.
    4. Bandiera, Oriana & Rasul, Imran & Viarengo, Martina, 2013. "The Making of Modern America: Migratory Flows in the Age of Mass Migration," Journal of Development Economics, Elsevier, vol. 102(C), pages 23-47.
    5. Timothy J Hatton & Zachary Ward, 2018. "International Migration in the Atlantic Economy 1850 - 1940," CEH Discussion Papers 02, Centre for Economic History, Research School of Economics, Australian National University.
    6. Christian Dustmann & Joseph-Simon Görlach, 2016. "The Economics of Temporary Migrations," Journal of Economic Literature, American Economic Association, vol. 54(1), pages 98-136, March.
    7. Cevat Giray Aksoy & Panu Poutvaara, 2019. "Refugees' and Irregular Migrants' Self-Selection into Europe: Who Migrates Where?," CESifo Working Paper Series 7781, CESifo.
    8. Scott L. Fulford & Ivan Petkov & Fabio Schiantarelli, 2020. "Does it matter where you came from? Ancestry composition and economic performance of US counties, 1850–2010," Journal of Economic Growth, Springer, vol. 25(3), pages 341-380, September.
    9. Murard, Elie, 2023. "Long-term effects of the 1923 mass refugee inflow on social cohesion in Greece," World Development, Elsevier, vol. 170(C).
    10. Mounir Karadja & Erik Prawitz, 2019. "Exit, Voice, and Political Change: Evidence from Swedish Mass Migration to the United States," Journal of Political Economy, University of Chicago Press, vol. 127(4), pages 1864-1925.
    11. Francesco Campo & Mariapia Mendola & Andrea Morrison & Gianmarco Ottaviano, "undated". "Immigrant Inventors and Diversity in the Age of Mass Migration," Development Working Papers 464, Centro Studi Luca d'Agliano, University of Milano.
    12. Dario Diodato & Andrea Morrison & Sergio Petralia, 2022. "Migration and invention in the Age of Mass Migration [Immigration in American economic history]," Journal of Economic Geography, Oxford University Press, vol. 22(2), pages 477-498.
    13. Francesco Campo & Mariapia Mendola & Andrea Morrison & Gianmarco Ottaviano, "undated". "Immigrant Inventors and Diversity in the Age of Mass Migration," Development Working Papers 464, Centro Studi Luca d'Agliano, University of Milano.
    14. David Andersson & Mounir Karadja & Erik Prawitz, 2022. "Mass Migration and Technological Change," Journal of the European Economic Association, European Economic Association, vol. 20(5), pages 1859-1896.
    15. Collins, William J. & Zimran, Ariell, 2019. "The economic assimilation of Irish Famine migrants to the United States," Explorations in Economic History, Elsevier, vol. 74(C).
    16. Ying Hao & Danni Han & Chong Ning & Jianhui Liao, 2021. "Culture from overseas and corporate transparency: Evidence from China," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 2491-2516, April.
    17. Zenou, Yves & Biavaschi, Costanza & Giulietti, Corrado, 2021. "Social Networks and (Political) Assimilation in the Age of Mass Migration," CEPR Discussion Papers 16182, C.E.P.R. Discussion Papers.
    18. Zimran, Ariell, 2022. "US immigrants’ secondary migration and geographic assimilation during the Age of Mass Migration," Explorations in Economic History, Elsevier, vol. 85(C).
    19. Jie Gao & Huiying Wu & Jiaxing You & Meg Smith, 2021. "Migrant entrepreneurs and firm innovation," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(5), pages 6069-6112, December.
    20. Alexander, Rohan & Ward, Zachary, 2018. "Age at Arrival and Assimilation During the Age of Mass Migration," The Journal of Economic History, Cambridge University Press, vol. 78(3), pages 904-937, September.

    More about this item

    Keywords

    Emigration; Attitudes; Corporate Performance; Mass Migration;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Z1 - Other Special Topics - - Cultural Economics

    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:zbw:glodps:830. 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/glabode.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.