Fernando Tejerina Gaite

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.

Institutional Investors on Boards: Do They Influence Corporate Finance?

In this paper we examine whether the presence of institutional investors representatives on boards leads to observable differences in corporate finance. We use a panel of 162 quoted Spanish nonfinancial firms from 2004 to 2010. We find that institutional directors have diverse incentives to engage in the corporate governance. Specifically, we find that directors representing pressure-sensitive investors (i.e., banks and insurance companies) prefer lower financial leverage whereas pressure-resistant directors (i.e., mutual funds and pension funds) show no particular preference. In addition, when analyzed separately, we find that directors appointed by banks and insurance firms have different attitudes and that bank representatives on boards increase both the financial leverage and the banking debt, which is consistent with resource dependence theory. We also find risk aversion among directors representing banks: the higher the fraction of shares they own, the more resistant the companies are to both financial leverage and banking debt. Taken together, our results support the broad literature that emphasizes the strategic role of board members in addition to their monitoring role.

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.