Productivity, managers' social connections and the Great Recession

Iftekhar Hasan and Stefano Manfredonia ()
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Stefano Manfredonia: Università di Roma "Tor Vergata", http://www.ceistorvergata.it

No 507, CEIS Research Paper from Tor Vergata University, CEIS

Abstract: This paper investigates whether managers' personal connections help corporations to escape the productivity trap. Leveraging the heterogeneity in the severity of the Great Recession across different sectors, the paper reports that (i) the Great Recession had a negative effect on corporate productivity, (ii) the effect was long-lasting and persistent, supporting a productivity-hysteresis hypothesis, (iii) managers' personal connections are counter-cyclical and indeed allowed corporations to escape the productivity trap primarily via favorable credit conditions, in periods of high information asymmetries and tight credit constraints.

Keywords: Social networks; Great Recession; Productivity. (search for similar items in EconPapers)
JEL-codes: D24 D85 G30 (search for similar items in EconPapers)
Pages: 65 pages
Date: 2021-03-10, Revised 2021-03-10
New Economics Papers: this item is included in nep-fdg, nep-his and nep-soc
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