The paper, that won the Best Pitch Award, is co-authored with Emilia Garcia-Appendini (University of St. Gallen) and Linus Siming (Institute of Finance, Audencia Business School). The study documents that firm managers with different cultural backgrounds who live side-by-side can display significant differences in corporate financing decisions. The authors exploit cultural differences within a geographical area that shares a common regulatory, institutional, and macroeconomic framework: The autonomous province of South Tyrol in Northern Italy, which is mainly comprised of individuals from either an Italian or a Germanic cultural background. Firms with managers from the Italian group are less capitalized than firms run by managers from the Germanic group. This difference in capitalization translates into a more intense use of informal sources of financing: Firms run by CEOs of Italian origin resort significantly more to trade credit as a source of financing, and are willing to lend more credit to their customers.