Gender Diversity in the Boardroom and Firm Financial Performance

The monitoring role performed by the board of directors is an important corporate governance control mechanism, especially in countries where external mechanisms are less well developed. The gender composition of the board can affect the quality of this monitoring role and thus the financial performance of the firm. This is part of the “business case” for female participation on boards, though arguments may also be framed in terms of ethical considerations. While the issue of board gender diversity has attracted growing research interest in recent years, most empirical results are based on U.S. data. This article adds to a growing number of non-U.S. studies by investigating the link between the gender diversity of the board and firm financial performance in Spain, a country which historically has had minimal female participation in the workforce, but which has now introduced legislation to improve equality of opportunities. We investigate the topic using panel data analysis and find that gender diversity – as measured by the percentage of women on the board and by the Blau and Shannon indices – has a positive effect on firm value and that the opposite causal relationship is not significant. Our study suggests that investors in Spain do not penalise firms which increase their female board membership and that greater gender diversity may generate economic gains.     

Wird die Konjunkturkomponente der Schuldenbremse ihrer Aufgabe noch gerecht?

Wirtschaftsdienst - In der Debatte um die Schuldenbremse geht es zumeist um eine Grundgesetzänderung. Dabei ist ein wesentlicher Teil der Schuldenbremse — die Konjunkturkomponente,...     

Corporate Social Responsibility and Family Business in Spain

Despite the economic relevance and distinctiveness of family firms, little attention has been devoted to researching their nature and functioning. Traditionally, family firms have been associated both to positive and negative features in their relationships with the stakeholders. This can be linked to different orientations toward corporate social responsibility. Thus, this research aims to identify the approaches that Spanish family firms maintain about social responsibility, based on the model developed by Quazi and O Brien Journal of Business Ethics 25, 33–51 (2000). An empirical study carried out for 112 Spanish family firms gives support to our initial assumption about these organizations not being a homogeneous group in terms of their orientation towards corporate social responsibility. The differences in perceptions do not seem to be associated to biographical characteristics. These results lead to some relevant academic and practical implications that suggest interesting lines for future research.María de la Cruz Déniz Déniz is professor in the Department of Management at Las Palmas de Gran Canaria University (Spain). She received her Ph.D. in the area of Management from that University in 1999. Her current research interests include the study of Corporate Social Performance and the Management of International Business.M^a Katiuska Cabrera Suárez is professor in the Department of Management at Las Palmas de Gran Canaria University (Spain). She received her Ph.D. in the area of Management from that University in 1998. Her current research interests include the study of Family Business Behaviour and Management.     

Enabling the Original Intent: Catalysts for Social Entrepreneurship

As capitalist economies have shifted their primary focus from providing goods and services for all, to concentrating wealth at the top echelons of societies, social entrepreneurs have been one source of re-capturing the original intent of capitalism. Social entrepreneurs have combined the efficiency and effectiveness of business organizations with the social concerns of many non-profit and governmental agencies. As a result, social entrepreneurship is viewed as having significant potential for alleviating many of the social ills we now face. To accomplish this mission, however, will require expansion of social enterprises beyond their current footprints. We explore alternate methods of expansion, scaling and replication, and then examine potential catalysts, which can enable social entrepreneurs to attain their goals of social improvement. The catalysts we identify are effectual logic, enhanced legitimacy through appropriate reporting metrics, and information technology. We conclude with two brief case studies that exemplify how these catalysts are currently working to enhance the effectiveness of social start-ups.     

Expertenwissen im politischen Prozess — Nutzen,Grenzen und Gefahren

Since the outbreak of the financial and economic crisis, confidence in politicians as well as the economists in their advisory expert panels seems to be at an all-time low. Why do politicians reject science-based advice unless it fits into their political agenda? Are economists misunderstood by politicians and vice versa? The tension between the ideal of evidence-based policy-making and the reality of policy-based evidence-making is hardly a new phenomenon. Therefore, the expectation that Donald Trump, the Brexiteers and European populists will necessarily disappoint their voters because they simply cannot deliver what they have promised is misleading. Experts would be well advised to use the debate on the post-factual era as an impetus to reflect critically on their profession. One opinion expressed in this Zeitgespräch is that the contested societal and political impact of modern economics is due to its restricted scientific self-concept. A more open, pluralistic and transdisciplinary self-definition of economics would strengthen its societal influence. Another contributor ponders the proper incentives to persuade academic economists to provide economic policy advice. Key is the independence of advisory institutions like the German Council of Economic Experts. The selection of people with the best scientific qualifications will ensure the reputation of such institutions.     

Business services,the new engine of French regional growth

This article analyses the evolution of employment in the French regions, putting the accent on business service firms. A ‘shift and share’ type of analysis shows that a primary decentralisation in tertiary activities seems to emerge in the 1990s, essentially pertaining to ancillary producer services. An explanatory analysis backs up the general validity of the regional economic base theory: the basic activities, to which business services can quite legitimately be attached, certainly play a leading long-term role on global employment dynamics. Finally it shows that over the past 20 years, the regional offer of services to businesses has been the major discriminating variable between regions, greatly influencing the evolution of basic employment and thus confirming the vital driving force of this sector in regional dynamics.     

Private investment in small public entities

Private placements provided by institutional or individual accredited investors are becoming an important financing tool for small public firms worldwide. However, private placement issuers offer poor average returns. We explain this puzzle using 2,987 traditional private placements by Canadian small public firms over a decade. We observe significant long-run post-issue underperformance using a classic factor pricing model. This underperformance is partially erased when the returns are adjusted to consider the issuers’ high level of investment, and to include the discount granted to private investors. We split the sample by the glamour/value dimension and by the firms’ investment activity. Only glamour firms with high investment activity underperform in the long run. Private investors obtain positive returns on placements in value and high investment firms. However, they overestimate investment projects of glamour firms.