Alfredo M. Bobillo

Shareholder activism and internationalization in the family firm

We present the internationalization of the family firm (FF) as a corporate growth strategy that is sometimes necessary to ensure survival. The different generations running the family firm (GFF) are likely to be constrained, not only by the demands of the business itself, but also by activism from non-management family shareholders. In this paper, we perform an analysis of a sample of Spanish family firms, both domestic and multinational, for the period 2000-2009. The results of this analysis show evidence of a positive relationship between the scope of internationalization and two other variables: family activism (FAI) and life cycle duration of the family firm (DLFF). When it comes to seeking alternative ways to create economic value and obtain debt finance, each generation is less risk averse than the preceding one. However, increasing family conflict over successive generations instigates economic value-destroying behavior. Overall, our findings suggest that economic value creation, leverage and international diversification in FFs will be conditioned not only by the ownership structure and size of the company, but also by the firms current point in the business life cycle, the generation that is in charge, and activism from other family members, all of which play a decisive role in the FF internationalization and economic value creation process.

Economic Orientation and Firms Capabilities around the World: Does Individualism and Collectivism Values Matter?

Using data from 34 countries, this paper examines how each countrys financial system and cultural ideology interact with globalization to impact the capability of firms to exploit external (i.e., capital and labor) and internal (i.e., research and development and intangible capital) advantages. Our results show that more culturally developed countries in terms of their financial, legal, and institutional framework are more prone to rely on internal competitive advantages. We also find that in the least technologically developed countries the acquisition of knowledge and the increase of transparency in financial markets are incentives for firms to rely more heavily on external competitive advantages.

Managing resources for economic value creation in the family firm

This study examines the financing choices of family firms in relation to leverage and economic value creation, taking into account the family firm life cycle. Firm ownership, control and the generation that is managing the family firm are other attributes of these firms. Additional factors, such as the exploitation of intangible assets (innovation capacity), and the ability to detect growth opportunities may also prove important in contributing towards successful economic value creation strategies. Using a panel of 738 Spanish firms, including 338 family-run businesses, we show that ownership structure, along with other variables, such as the firm’s use of intangible assets, its growth capacity, the generation running the firm and the stage it has reached in its life cycle, provide the foundational pillars for economic value creation and leverage in the family firm. We also find a higher proportion of family businesses in cyclical growth industries.

The dynamics of concentration and inequality in Spanish industries (1990‐2001)

This study develops a systematic analysis of the concentration and inequality levels of 20 Spanish industries over the period 1990‐2001. The methodology traced is based on the use of indices both for evaluating the inequality (Gini,MRD&Coefficient of Variation), and for studying the concentration (Herfindahl‐Hirchman, Theil & Hannah‐Kay). This article adopts a dynamic approach, through the Distributional Change Index. The analysis confirms the different behaviour within the durable and non‐durable goods groups of Spain’s industries. Significant differences also appear with respect to the characterisation of the sectors. These characteristics are centred on the intensity of capital and skill, the capacity for technological development and the intensive use of agricultural inputs. Another of the most relevant conclusions is that referring to the increase competition of certain industries in Spain, particularly those belonging to the non‐durable goods group.