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This work provides an empirical analysis to determine whether directors’ compensation is lower (“transparency control effect” and “transparency deterrent effect”) or higher (“effects of transparency on increasing competition in pay”) among firms with greater transparency in terms of directors’ compensation.

A disclosure index about board compensation and different models based on linear panel-data regression have been developed, on a sample of 73 Spanish firms for the period 2007–2012.

Our results suggest that disclosure on pay strategy to directors leads to an increase in directors’ compensation, therefore, in this case, the effect of transparency on increasing competition in pay seems to prevail. Conversely, the disclosure on individual directors’ compensation and payment leads to a decrement in directors’ compensation, prevailing the transparency control effect and transparency deterrent effect.

The results of this study might be of interest to investors (to take into account these effects before they implement additional corporate governance reforms) and regulators (to be aware of the importance of this issue).

First, we study the effect that transparency and voluntary disclosure regarding board compensation has on the level of directors’ compensation. Second, in this study we go one step further in the transparency of board compensation disclosures by constructing a disclosure index. Finally, the results contribute to the necessary debate that is currently taking place in the Spanish, European and international context regarding this issue.

In this paper, we build a complete information bargaining model of collective negotiation that can explain delays in reaching agreements. We structurally estimate the model using firm-level data for large Spanish firms. For this type of firm, the assumption of complete information seems a sensible one, and it matches the collective bargaining environment better than the one provided by private information models. The specification of the model with players having different discount factors allows us to measure their relative bargaining power, a recurrent question in the theory of bargaining. Our model replicates the data on delays at the sectoral and aggregate level. We also find that both entrepreneurs and workers have high discount factors, and no evidence that entrepreneurs have greater bargaining power, as usually assumed.

The main purpose of this conceptual paper is drawing up a framework to assess the company responsibility regarding culture and fine arts. Since a rich cultural life requires variety and commitment to innovative and bold forms of cultural activity, the model should measure the corporate commitment to fostering axiological pluralism in the cultural sphere. A subordinate purpose is testing that model using primary data on the biggest Spanish listed companies. First, we define the corporate cultural responsibility (CCR) as a specific field of the corporate social responsibility. Second, we defend that corporate citizenship involves accepting some risks to be in line with the public expectations on arts and culture. Third, it is proposed an assessment model that takes into account the kind of cultural activities promoted by the firms, from conventional and uncommitted to innovative and provoking. The model makes possible to rank the companies according to the quality of their CCR and take into account the influence of size and sector. The model reveals whether firms support conventional versus challenging cultural activities. This should be taken into consideration both by CSR managers and policy makers. In spite of the mounting economic significance of symbols and creativity, there is still little literature that specifically addresses the role of firms regarding arts and culture as another facet of their responsibility as corporate citizens.

This chapter presents the current research status of family constitutions from an economics perspective. It locates the family constitution as part of the family and business governance structure of a family firm and the owner family. The typical structure and content of a family constitution are introduced. The chapter focuses on the status of research about family constitutions and provides a structured map for future research. With regard to extant research, it must be stated that the stock of literature is small. The contributions to literature are categorized in surveys; conceptual contributions; survey data; small sample, qualitative, empirical studies; and big sample, quantitative, empirical studies. The latter group includes three studies with a separate family constitution variable. This small number symbolizes that the family constitution still is an under-researched area. Therefore, family constitution research is far away from being able to answer central questions of advice-seeking owner families like, for example, whether a family constitution affects family performance, firm performance, or both; or whether the development process of a family constitutions disposes of an effect on family or firm performance separately from the hypothesized effect of the family constitution document.

This chapter takes a socioemotional wealth (SEW) perspective to explain the adoption of human resource (HR) practices in family-controlled firms. Previous studies on human resource management (HRM) in family firms have focused only on a small range of HR practices and have rarely utilized strong conceptual frameworks. As a result, these studies have overlooked important factors that contribute to the distinctiveness of HRM in these organizations. Based on ample evidence that shows family businesses' preference for non-economically motivated objectives collectively labeled as SEW, we propose that the presence of SEW influences HR practices in family firms.

Consequently, we reexamine existing empirical evidence of the determinants of HRM in family-controlled firms under the SEW approach. We also reinterpret existing theoretical models of family-controlled firms and their implications for HRM under the SEW umbrella. Our final goal is to establish an integrated framework through a set of sound propositions on HRM in family businesses. By integrating the literature, we aim to fill theoretical gaps in our understanding of the determinants of HR practices in the family business context and direct future research in this area.

Notwithstanding the relevance of managerial control systems (MCS) in any organization, as well the distinctive role they can play in family business, due to its specific features, the literature rarely dealt with the role and characteristics of MCS in family business. Taking into account previous contributions from different disciplines (organization, management accounting, and family business), the current work aims to better understand the state of the art about research in the field of MCS in family business in order to identify main research gaps and propose future research directions.

Forty-five articles have been analyzed, which were issued in 29 sources. Research findings show that the literature on MCS in family business is limited and not very conclusive. Some authors focused on the type of controls, other authors outlined the role of MCS in managerialization and the relation with professionalization. A few studies focused on some specific mechanisms, especially strategic planning and compensation. Some contributes dealt with MCS’ determinants and impacts. Differences between family and non-family firms were proposed. However, a clear and organized picture of the features of MCS in family firms, their determinants, and impacts has not yet been developed. Particularly, the impact of the distinctive features of family business on MCS represents an underdeveloped research field along with how MCS can be differently developed and used in different kinds of family firms. In the light of findings of the literature review, we propose a reference research framework on MCS in family business.

The relevance of finance for strategy is probably never greater than during a recession. We argue that the strategy literature has been virtually silent on the issue of recessions, and that this constitutes a regrettable sin of omission. Recessions are also periods when the commonly held view of financial markets in the strategy literature – efficient, and therefore strategically irrelevant – is particularly misplaced. A key route to rectify this omission is to focus on how recessions affect investment behavior, and thereby firms’ stocks of assets and capabilities which ultimately will affect competitive outcomes. In the present chapter, we aim to contribute by analyzing how two key aspects of recessions, demand reductions and reductions in credit availability, affect three different types of investments: physical capital, R&D and innovation, and human- and organizational capital. We synthesize and conceptualize insights from finance- and macroeconomics about how recessions affect different types of investments and find that recessions not only affect the level of investment, but also the composition of investments. Some of these effects are quite counterintuitive. For example, investments in R&D are both more and less sensitive to credit constraints than physical capital is, depending on available internal finance. Investments in human capital grow as demand falls, and both R&D and human capital investments show important nonlinearities with respect to changes in demand.

This chapter seeks to explain why Spanish companies are so active in Global Compact (GC) initiative, while their external environment is worse than other European countries. From 2010 onwards, Spain ranks first in business participants in GC initiative, ahead of European countries with higher levels of transparency and higher quality of governance.

In this chapter we relate the Spanish evolution of GC signatories and external uncertainty (measured by Worldwide Governance Indicators and Corruption Perception Index); pointing out two theoretical approaches: Institutional and Social Identity Theories.

Economic perspective is not sufficient to explain the companies’ adhesion to the GC initiative. In this chapter we explain the companies’ behaviour regarding to the Corporate Social Responsibility (CSR) activities from a social perspective.

This chapter provides a response to understand the active behaviour of Spanish companies regarding to GC initiative.

This is the first study that analyses the relationship between the GC evolution in a country and its external uncertainty. Moreover it contributes to the CSR field by providing two theoretical approaches that offer complementary explanation and advance our knowledge about the GC motivations.

The regional nature of MNEs has become a key aspect of international business thinking, since Rugman demonstrated empirically that MNEs are mainly home-region oriented and studied the impact that the regional phenomenon has on firm performance. The extant international business literature on small- and medium-sized firms of interest to Aharoni is also evolving with the consideration of new aspects such as the “born global illusion,” and the necessary balance between firm-specific advantages (FSAs) and the liability of foreignness (LOF) when going abroad. This chapter presents new insights on these topics by examining the regionalization of Spanish manufacturing firms, their export sales orientation and their FDI orientation. Finally, we study the impact of FSAs on the intraregional and foreign sales of Spanish companies.

We examine gender diversity in Spanish multinational companies to test whether their policies in the different countries (i.e. institutional contexts) in which they operate (mainly Latin American countries) are consistent with institutional norms.

After reviewing the relevant literature, we compare longitudinal gender employment data for some of the largest Spanish multinationals. We then extend the analysis to different organizational levels as well as cross-sectionally, to their Latin American subsidiaries.

While not universal, the largest Spanish multinationals show progress in their compliance of gender recommendations within their national borders, in spite of the voluntary character of the relevant legislation. In addition, their subsidiaries sometimes exhibit better gender proportions than the national averages in Latin American countries.

The study’s emphasis on some of the largest Spanish multinational corporations cannot be considered representative of all Spanish companies or of subsidiaries in those host countries.

This study may be of use for politicians, boards of directors, and other decision makers that need to be factually aware of the way these firms manage workplace diversity.

This study shows that some of the largest Spanish firms are slowly exhibiting responsible behavior with respect to female employment, both longitudinally and in their subsidiaries. The fact that this is not a consistent tendency lends support to the argument that existing legislation should have stronger normative pressures, such as fines and penalties for noncompliance.