Firm Size and Short-Term Dynamics in Aggregate Entry and Exit

Much of the research on industry dynamics focuses on the interdependence between the sectorial rates of entry and exit.This paper argues that the size of firms and the reaction-adjustment period are important conditions missed in this literature.I illustrate the effects of this omission using data from the Spanish manufacturing industries between 1994 and 2001.Estimates from systems of equations models provide evidence of a conical revolving door phenomenon and of partial adjustments in the replacement-displacement of large firms.corporate size;independency;panel data;simulation

The Trade-Off Between Risk and Control in Corporate Ownership

This paper analyses the risk control trade o$in corporate ownership. It presents a simple model in which large shareholders decide their share depending on their risk aversion, risk-neutral effects attached to rm size and the e$ectiveness of di$erent (external and internal) mechanisms for controlling managers behaviour. Two institutional settings in which the expected benefits from control appear to overcome risk aspects are explored: the USA at the turn of the 20th century and Spain in the 1990's. The empirical evidence seems to support the predictions of the model regarding the relationship between ownership concentration, the characteristics of governance and the size of the firm.Corporate Governance;Disciplinary Mechanisms;Large Shareholders

The Role of Stakeholders in Accounting of Private Patrimonies The Management Of The Osuna Ducal Estate (1590-1633)

The main aim of this paper is to test the validity of the stakeholder approach in a historical context (16th and 17th century), very different to the one in which the theory was originally developed and has normally been used. For this purpose, the paper deals with management in the Osuna Ducal Estate at the end of the 16th century and beginning of the 17th century. In that period, the Ducal Estate reached such a high level of indebtedness that creditors could not even collect the interest on their loans. This led them to lodge a complaint with the Crown and consequently, as of 1590, the Ducal Estate patrimony was seized by the Government. Since the changes that occurred in the ODE patrimony were promoted by creditors and the Crown, the stakeholder approach has been applied to analyse the case. We can conclude that stakeholder approach is sufficiently able to explain the changes that took place in the management of the Osuna Ducal Estate in the 16th and 17th century and, mainly, the role of accounting in these changes.Accounting History, Stakeholder Approach, Aristocratic Accounting, 16th and 17th century

Recent Developments in German Corporate Governance

We contrast the features of the German corporate governance system with those of other systems and discuss the recent regulatory initiatives.For example, the rules on insider trading and anti-trust have been strengthened.The Restructuring Act has been revised to prevent minority shareholders from stalling corporate restructuring via legal actions.The Takeover Act now prescribes a tender offer as soon as an investor acquires at least 30% of a firm's equity.However, the Act also allows anti-takeover devices.Despite the recent, substantial changes, we conclude that the main characteristics of the German system are still in place.Corporate governance;ownership structure;co-determination;mergers and acquisitions;board of directors

Firm Size and Short-Term Dynamics in Aggregate Entry and Exit

Much of the research on industry dynamics focuses on the interdependence between the sectorial rates of entry and exit.This paper argues that the size of firms and the reaction-adjustment period are important conditions missed in this literature.I illustrate the effects of this omission using data from the Spanish manufacturing industries between 1994 and 2001.Estimates from systems of equations models provide evidence of a conical revolving door phenomenon and of partial adjustments in the replacement-displacement of large firms.

Econometric Modelling in Blockholder Systems of Corporate Governance

corporate governance;estimation;endogeniety;model selection

Multinationals, R&D and productivity: Evidence for UK Manufacturing firms

In this study we analyze multinationality (domestic-based firms vs. multinationals) and foreignness (foreign vs. domestic firms) effects in the returns of R&D to productivity. We follow a two-step strategy. In the first step, we consistently estimate firm’s productivity by GMM and numerically compute the sample distribution of the R&D returns. In the second step, we use stochastic dominance techniques to make inferences on the multinationality and foreignness effects. Results for a panel of UK manufacturing firms suggest that multinationality and foreignness effects operate in an opposite way: whilst the multinationality effect enhances R&D returns, the foreignness diminishes them.multinationals, foreignness, R&D, productivity