Title: Discrimination, Managers, and Firm Performance: Evidence from “Aryanizations” in Nazi German, w Kilian Huber and Volken Lindenthal


Large-scale increases in discriminatory attitudes can lead to the dismissal of highly qualied business leaders who belong to targeted groups.

We study how the forced removal of Jewish managers in Nazi Germany, caused by surging antisemitism, affected large firms.

The loss of Jewish managers with certain qualications led to large and persistent stock price reductions for affected firms.

Dividend payments and returns on assets also declined. A back-of-the envelope calculation suggests that the aggregate market valuation of firms listed in Berlin fell by 1.8 percent of German GNP.

The findings imply that discrimination can lead to persistent and first-order economic losses.