Discrimination, Manager, and Firm Performance: Evidence from "Aryanizations" in Nazi Germany

Kilian Huber, Volker Lindenthal () and Fabian Waldinger
Additional contact information
Volker Lindenthal: Ludwig Maximilian University of Munich

No 2020-171, Working Papers from Becker Friedman Institute for Research In Economics

Abstract: Large-scale increases in discrimination can lead to dismissals of highly qualified managers. We investigate how expulsions of senior Jewish managers, due to rising discrimination in Nazi Germany, affected large corporations. Firms that lost Jewish managers experienced persistent reductions in stock prices, dividends, and returns on assets. Aggregate market value fell by roughly 1.8 percent of German GNP because of the expulsions. Managers who served as key connectors to other firms and managers who were highly educated were particularly important for firm performance. The findings imply that individual managers drive firm performance. Discrimination against qualified business leaders causes first-order economic losses.

Pages: 86 pages
Date: 2020
New Economics Papers: this item is included in nep-bec and nep-hrm
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Citations: View citations in EconPapers (4)

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https://repec.bfi.uchicago.edu/RePEc/pdfs/BFI_WP_2020171.pdf (application/pdf)

Related works:
Journal Article: Discrimination, Managers, and Firm Performance: Evidence from “Aryanizations” in Nazi Germany (2021)
Working Paper: Discrimination, Managers, and Firm Performance: Evidence from “Aryanizations” in Nazi Germany (2021)
Working Paper: Discrimination, Managers, and Firm Performance: Evidence from "Aryanizations" in Nazi Germany (2020)
Working Paper: Discrimination, managers, and firm performance: evidence from “Aryanizations” in Nazi Germany (2019)
Working Paper: Discrimination, managers, and firm performance: evidence from “Aryanizations” in Nazi Germany (2019)
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