Discrimination, managers, and firm performance: evidence from “Aryanizations” in Nazi Germany

Kilian Huber, Volker Lindenthal and Fabian Waldinger

CEP Discussion Papers from Centre for Economic Performance, LSE

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.

Keywords: discrimination; antisemitism; firms; managers; stock prices; Nazi Germany (search for similar items in EconPapers)
JEL-codes: J71 M21 N84 (search for similar items in EconPapers)
Date: 2019-01-28
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

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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, Manager, and Firm Performance: Evidence from "Aryanizations" in Nazi Germany (2020)
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)
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