Discrimination, Managers, and Firm Performance: Evidence from “Aryanizations” in Nazi Germany

Kilian Huber, Volker Lindenthal and Fabian Waldinger

No 28766, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: D22 E60 G30 J7 J71 M12 N24 N34 N8 (search for similar items in EconPapers)
Date: 2021-05
New Economics Papers: this item is included in nep-bec, nep-his, nep-hrm, nep-lma and nep-mac
Note: CF DAE LS ME POL
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Citations: View citations in EconPapers (33)

Published as Kilian Huber & Volker Lindenthal & Fabian Waldinger, 2021. "Discrimination, Managers, and Firm Performance: Evidence from “Aryanizations” in Nazi Germany," Journal of Political Economy, vol 129(9), pages 2455-2503.

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Related works:
Journal Article: 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)
Working Paper: Discrimination, managers, and firm performance: evidence from “Aryanizations” in Nazi Germany (2019)
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