This paper studies to what extent differences in ownership, governance and management could explain territorial gaps among Italian firms. First, it analyses the role of education in the selection process for entrepreneurs and managers, and second, it studies the distinctive characteristics of ownership, governance and management in the Centre and North and in the South of Italy.
In the South of Italy, the education levels of entrepreneurs and managers are lower than in the Centre and North and account for about one tenth of the size gap between firms located in the two areas. Southern firms are characterized by more frequent family ownership and a higher fraction of local and family directors on the board; these characteristics are associated with lower separation between ownership and governance, lower adoption of structured managerial practices and lower productivity.
