Mafia and Firm Performance

The Effect of Organized Crime and Its Judicial Removal

The mafia poses a significant threat to society, institutions, and businesses. This book explores related topics, such as evaluating the presence of the mafia, the infiltration of organized crime into the legitimate economy, and the role of planning and management control systems in assessing the prospects for the continuity of criminal enterprises under judicial administration and managing their transition from organized crime control to legality.

Pagine: 174

ISBN: 9788835183457

Edizione:1^a edizione 2025

Codice editore: 10384.2

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The mafia poses a significant threat to society, institutions, and businesses. To gain power, generate profits, and launder illegal money, organized crime infiltrates companies and public institutions, distorts market prices, and undermines the free competition of legitimate firms. Despite these serious negative effects, few studies measure the impact of the mafia and its removal on firm performance. To fill this gap, this book presents the findings of the PRIN PNRR 2022 research project, titled “The Effect of Organized Crime on Firm Technical Efficiency and R&D Investments,” conducted in collaboration by the University of Messina (leader), the University Mediterranea of Reggio Calabria, and the University for Foreigners Dante Alighieri of Reggio Calabria. It also explores related topics, such as evaluating the presence of the mafia, the infiltration of organized crime into the legitimate economy, and the role of planning and management control systems in assessing the prospects for the continuity of criminal enterprises under judicial administration and managing their transition from organized crime control to legality, all while protecting operations and jobs.

Domenico Nicolò is a full professor of Business Economics (Economia Aziendale) at the University Mediterranea of Reggio Calabria (Italy). He has written numerous books and scientific articles. He serves as the scientific coordinator of the Research Unit at the University Mediterranea of Reggio Calabria for the PRIN PNRR 2022 project titled “The Effect of Organized Crime on Firm Technical Efficiency and R&D Investments.”

Introduction

Literature Review: the Effect of Crime and the Mafia on Firm Performance

A systematic literature review on the effect of crime on firm performance
A traditional literature review on the effect of organized crime on firm performance

Assessing Organized Crime Presence. A NecessaryStep to Evaluate its Effects on Firm Performance

Introduction
Preliminary issues: Definition, typical activities, and other factors relevant to assessing the presence of mafia
Indicators of organized crime
Subjective and indirect indicators of organized crime
The composite mafia index estimated by Forgione and Migliardo as part of the PRIN PNRR project
Indicators of the spread of organized crime and the territory’s vulnerability to mafia infiltration

The Infiltration of Organized Crime into the Economy and Firms

Introduction
Mafia revenues
The adverse effect of organized crime on society
Common traits of firms infiltrated by organized crime
Characteristics of financial statements of infiltrated companies
The Italian framework for combating money laundering of illegal funds
Money laundering and mafia infiltration in businesses: Evidence from Italy
Strategies of criminal firms in the Digital Era: Internationalization, diversification, specialization, networking, and digital innovation

The Effect of Mafia on Firm Performance in Italy

Negative externalities of the mafia on legitimate businesses
Organized crime and firms’ profitability in Italy: An analysis of the Bank of Italy’s INVIND Survey
The impact of organized crime on the profitability of high-growth startups: The case of Italian Gazelles
The effect of organized crime on firms’ technical efficiency in the civil engineering sector in Italy

From Mafia Control to Legality. Planning and Management Control in Judicial Administration

Introduction
Judicial administration in the Italian legal framework
The judicial administrator’s report on the prospects for continuity of the seized companies
From mafia control to legality. The role of planning and management control systems in assessing the continuity of seized firms
Assessment of the feasibility of the judicial administrator’s plan
Assessing risks in evaluating the continuity prospects of seized businesses
Strategic scenarios from the plan

The Effect of Judicial Removal of the Mafia on the Performance of Seized Italian Firms and Their Legitimate Competitors

The effect of judicial removal of the mafia on the performance of seized Italian firms
The effect of the judicial removal of mafia from infiltrated firms on the performance of legitimate competitors: Insights from ongoing research in Italy
Judicial administration and family business resilience: Insights from a natural experiment in Italy