Bosses’ Impatience and Digital Technologies

Abstract

This paper analyses the impact of entrepreneurs’ preferences (time impatience and risk attitudes) on firms’ propensity to make general investments and also specific investments in digital technologies. To fulfil this aim, we use the responses to the questions intended to measure risk attitude and patience included in the Rilevazione su Imprese e Lavoro (Inapp-RIL) survey conducted by Inapp on a representative sample of Italian firms. The regression estimates show that time impatience has at most a weak effect on firms’ ‘general’ investments, while it reduces the propensity to undertake investments in digital technologies. Risk attitude is positively correlated with digital investment, even though the estimates are weaker in magnitude and statistical significance than those found for impatience. These results are robust to simultaneity and endogeneity issues.