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dc.contributor.authorGUISO, Luigi
dc.contributor.authorRUSTICHINI, Aldo
dc.date.accessioned2011-02-07T13:04:43Z
dc.date.available2011-02-07T13:04:43Z
dc.date.issued2011-01-01
dc.identifier.issn1725-6704
dc.identifier.urihttp://hdl.handle.net/1814/15642
dc.descriptionWe thank for helpful comments Fabiano Schivardi and seminar participants at the European University Institute,the Einaudi Institute for Economics and Finance, University of California Los Angeles, University College London, the conference New directions in applied microeconomics, NYU-Villa la Pietra.en
dc.description.abstractWe collect information on prenatal testosterone in a large sample of entrepreneurs by measuring the length of their 2th to 4th fingers in face to face interviews. Entrepreneurs with higher exposure to prenatal testosterone (lower second to fourth digit ratio) manage larger firms, are matched with larger firms when acquire control and experience faster average growth over the years they manage the firm. We also find that prenatal testosterone is correlated with elicited measures of entrepreneurial skills such as ability to stand work, and the latter are correlated with firm size. This evidence suggests entrepreneurial skills have a biological component and is consistent with models of the size distribution of firms based on entrepreneurial ability. However, firms run by high-testosterone entrepreneurs have lower profitability as measured by return on assets. We offer evidence that this is because the same biological factor that enhances entrepreneurial skills also induces empire building preferences, which leads high-testosterone entrepreneurs to target a firm size that exceeds the profit maximizing value.en
dc.description.sponsorshipAldo Rustichini acknowledges financial support of the ESRC grant RES-062-23-1385en
dc.format.mimetypeapplication/pdf
dc.language.isoenen
dc.relation.ispartofseriesEUI ECOen
dc.relation.ispartofseries2011/01en
dc.rightsinfo:eu-repo/semantics/openAccess
dc.subjectFirm size distributionen
dc.subjectEntrepreneurial successen
dc.subjectDigit ratioen
dc.subjectL26en
dc.subjectL21en
dc.subjectL25en
dc.subjectD22en
dc.titleUnderstanding the Size and Profitability of Firms: The Role of a Biological Factoren
dc.typeWorking Paperen
dc.neeo.contributorGUISO|Luigi|aut|EUI70005
dc.neeo.contributorRUSTICHINI|Aldo|aut|
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