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This research aims to investigate the impact of exogenous shocks on individuals' risk tolerance, particularly when originating outside the economic or financial sphere. Focusing on Italy as the first Western country affected by COVID-19, this paper explores whether the pandemic led to a decrease in Italians' financial risk tolerance (FRT).

This study used a two-stage approach for data analysis. Initial examination of key variables used linear regression (ordinary least square [OLS]) with robust errors. Subsequently, a system of structural equations (structural equation model [SEM]) was used for a more nuanced exploration of hypothetical relationships between constructs and their observed indicators. SEM addressed reliability issues inherent in OLS, offering a robust analysis of structural models based on specified hypotheses. To assess the impact of COVID-19 on Italians' FRT, the Grable and Lytton Risk Tolerance Scale was used, measuring changes through a scored questionnaire with values ranging from 1 (greater risk aversion) to 4 (greater risk propensity).

This study used three distinct OLS regression models to analyze the impact of COVID-19 on Italians' FRT, considering mortality, infection and stringency rates. Findings revealed that older individuals exhibited lower risk tolerance across FRT dimensions, consistent with previous research. Men were more risk-prone, aligning with gender-related financial literacy disparities. Married respondents tended to be less risk-tolerant, supporting the idea that marital status influences risk attitude. Education level showed a slightly negative impact on investment risk. Professional instability, lower income and stock market inexperience were associated with lower risk tolerance. Notably, the COVID-19 pandemic had a significant positive effect, making respondents more risk-averse. SEM methodology was used to examine the moderating effects of COVID-19 proxies on FRT changes.

This research brings a novel perspective to the ongoing debate on exogenous shocks' impact on individuals' risk tolerance, particularly when originating outside the economic or financial domain. Focusing on Italy, the first Western country hit by COVID-19, this study uniquely investigates the pandemic's effect on Italians' FRT. With a large and representative sample, the findings contribute significantly to the literature on risk attitude, shedding light on the pandemic's impact. This study's originality lies in providing reliable evidence with policy implications, emphasizing the imperative for government intervention in addressing both health and economic issues in the wake of such external shocks.

The purpose of this study is to investigate whether and how inter-firm cooperation and firm age moderate the relationship between family ownership and productivity.

We first estimate the total factor productivity (TFP) of a large sample of Italian firms observed over the period 2010–2018 and then apply a Poisson random effects model.

TFP is, on average, higher for non-family firms (non-FFs) than for FF. Furthermore, inter-organizational cooperation and firm age mitigate the negative effect of family ownership. In detail, it is found that belonging to a network acts as a moderator in different ways according to firm age. Indeed, young FFs underperform non-FF peers, although the TFP gap decreases with age. In contrast, the benefits of a formal network are high for older FFs, suggesting that an age-related learning process is at work.

The study provides evidence that FFs can outperform non-FFs when they move away from Socio-Emotional Wealth-centered reference points and exploit knowledge flows arising from high levels of social capital. In the case of mature FFs, networking is a driver of TFP, allowing them to acquire external resources. Since FFs often do not have sufficient in-house knowledge and resources, they must be aware of the value of business cooperation. While preserving the familiar identity of small companies, networks grant FFs the competitive and scale advantages of being large.

Despite the wide but ambiguous body of research on the performance gap between FFs and non-FFs, little is known about the role of FFs’ heterogeneity. This study has proven successful in detecting age as a factor in heterogeneity, specifically to explain the network effect on the link between ownership and TFP. Based on a representative sample, the study provides a solid framework for FFs, policymakers and academic research on family-owned companies.