Jose I. Galan

ASSESSING THE EFFECT OF PUBLIC SUBSIDIES ON FIRM R&D INVESTMENT: A SURVEY

This survey examines the empirical literature on the relationship between public R&D subsidies and private R&D investment over the past five decades. The survey reveals a considerable heterogeneity of empirical results that cannot be explained fully by methodological issues. We aim to provide further explanations of the possible causes of that heterogeneity. In particular, we emphasise a set of issues that, in our view, are critical to understanding the potential effect of public R&D subsidies on private R&D spending. Special attention is paid to the dynamic aspects and composition of firm R&D, the constraints faced by the firm (such as financial constraints), and the amount and source of public subsidies. None of these issues have been investigated in depth. We formulate a set of research assumptions to guide future empirical research in this field.

Determinant factors of foreign direct investment: some empirical evidence

This paper reports on an empirical study based on 103 Spanish companies which have conducted foreign direct investment (FDI). Built on the eclectic paradigm, it aims at finding out the main ownership, internalization and location factors which affect such internationalization processes. The results confirm the determinant importance of factors such as the existence of specific assets of an intangible nature. They also show that transaction costs and other questions related to knowledge transfer and accumulation are relevant in the choice of FDI over alternative forms of internationalization. Current and future markets and their expected growth are the key factors for selecting a destination. In general, this paper provides evidence that what is known about determinants of FDI seems to extend to Spanish multinationals today.

Stakeholder Management and Nonparticipation in Controversial Business

The main objective of this research is to provide knowledge on the impact that nonparticipation in controversial business can have on corporate financial performance. Accordingly, the stakeholder theory perspective was adopted and the effect of nonparticipation in controversial business on corporatefinancial performance was tested by using market-based and accounting-based economic measures. In addition, the effect of primary stakeholders’ management activities on corporate financial performance was tested, whereby it can be seen whether this nonparticipation in controversial business reveals a different causal relationship with certain aspects of economic performance.

Is social responsibility driven by industry or firm‐specific factors?

Purpose – This study aims to revisit the relative importance of industry and firm level effects on corporate social responsibility (CSR), with the objective of clarifying their diverse effects on CSR.Design/methodology/approach – The authors suggest that CSR is a shared strategic asset based on insights from the industrial organization and institutional schools, taking into account that there are determinants of CSR that may be operating inside the corporation according to the resource‐based view. They employ a variance components method and a sample compiled of 495 US firms from 19 industries using five‐year periods.Findings – The study indicates that firms retain considerable self‐determinism regarding their CSR trajectories, but the latter also represent a shared strategic asset. Thus, these results combined imply that CSR needs to be examined on both levels simultaneously.Practical implications – The results of this study can provide non‐governmental organizations and governmental and regulatory insti...