Productivity, Managers' Social Connections and the Great Recession

65 Pages Posted: 11 Mar 2021

See all articles by Iftekhar Hasan

Iftekhar Hasan

Fordham University ; Bank of Finland; University of Sydney

Stefano Manfredonia

Fordham University

Date Written: March 10, 2021


This paper investigates whether managers' personal connections help corporations to escape the productivity trap. Leveraging the heterogeneity in the severity of the Great Recession across different sectors, the paper reports that (i) the Great Recession had a negative effect on corporate productivity, (ii) the effect was long-lasting and persistent, supporting a productivity-hysteresis hypothesis, (iii) managers' personal connections are counter-cyclical and indeed allowed corporations to escape the productivity trap primarily via favorable credit conditions, in periods of high information asymmetries and tight credit constraints.

Keywords: Social networks, Great Recession, Productivity

JEL Classification: D85, G30, D24

Suggested Citation

Hasan, Iftekhar and Manfredonia, Stefano, Productivity, Managers' Social Connections and the Great Recession (March 10, 2021). CEIS Working Paper No. 507, Available at SSRN: or

Iftekhar Hasan

Fordham University ( email )

NEW YORK, NY 10023
United States

Bank of Finland ( email )

P.O. Box 160
Helsinki 00101

University of Sydney ( email )

P.O. Box H58
Sydney, NSW 2006

Stefano Manfredonia (Contact Author)

Fordham University ( email )

113 West 60th Street
New York, NY 10023
United States

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