Technological Collaboration: Bridging the Innovation Gap between Small and Large Firms*

This paper analyzes how technological collaboration acts as an input to the innovation process and allows small and medium‐sized enterprises to bridge the innovation gap with their bigger counterparts. Based on a large longitudinal sample of Spanish manufacturing firms, the results show that though technological collaboration is a useful mechanism for firms of all sizes to improve innovativeness, it is a critical factor for the smallest firms. The impact of this collaboration varies depending on innovation output and type of partner. Specifically, the impact of collaboration in small and medium‐sized firms is more significant for product than process innovations. Regarding type of partner, vertical collaboration—with suppliers and clients—has the greatest impact on firm innovativeness, though this effect is clearer for medium‐sized enterprises than for the smallest firms.     

ESTIMATION OF VALUE AT RISK AND RUIN PROBABILITY FOR DIFFUSION PROCESSES WITH JUMPS

In this paper we give upper bounds for both the Value at Risk   VaR _α,  0 < α < 1  , and for ruin probabilities associated with the supremum of a process driven by a Brownian motion and a compound Poisson process. We obtain lower bounds for the same Value at Risk, and for different cases we discuss the behavior of the bounds for small α. We prove our bounds are "asymptotically" optimal, as α tends to zero. The ruin probabilities obtained are related to other bounds found in recent literature.     

On the Asymmetric Recognition of Good and Bad News in France, Germany and the United Kingdom

We investigate whether accounting systems recognise bad news more promptly in earnings than good news, where news is proxied by changes in share price. The analysis is based on a sample of firm/years drawn from France, Germany, and the UK during 1990 to 1998. These three countries are the originators of three distinct legal traditions. Previous studies have argued that asymmetric recognition, one manifestation of conservative accounting, is sensitive to legal background and history. We find that in all three countries the contemporaneous association between earnings and returns is much stronger for bad news (i.e. when price changes are negative) than for good news, and although the results are strongest for the UK, and then France, the inter-country differences are not statistically significant. The stronger reaction to bad news is more pronounced for firms with relatively low capitalisation. We also find that the relative persistence of profits and losses are consistent with asymmetric recognition in France and the UK, but not in Germany, and that the more timely recognition of bad news is maintained even when we control for earnings persistence. When we extend the model to include price changes from previous periods, we see that the stronger reaction to bad news decays over time. The results from this model also suggest that 'pervasive' conservatism, unrelated to news, is observed in Germany and France, but the UK results are consistent with optimism. Although asymmetric recognition is generally strongest in the UK and weakest in Germany, and this broadly conforms to our expectations, the differences are less clear than the results from earlier periods.     

Business Ethics in Spain

This article is an introduction to the selection of papers on "Business Ethics in Spain" included in this monographic issue of the Journal of Business Ethics. Specifically, this article is a survey of the development of the social, political, cultural and economic background of business in Spain since 1940, in order to show how the ethical values, attitudes and problems of the Spanish managers changed in these years. First, the global evolution of this background is explained, and then several relevant problems are discussed, namely those of the attitudes of business towards the State and the law (with an aside on the attitudes of society towards profit and wealth), corruption, and the grey economy, taxes, and irregular labour. The article concludes with a survey of the scientific developments of business ethics in Spain.     

The effect of relative performance feedback on individual performance in team settings under group-based incentives*

This study reports the results of an experiment that analyses the behavioural effect of relative performance feedback (RPF) on individual performance when compensation is based on team performance. Specifically, it investigates whether RPF affects individual performance differently when the comparison focuses on other members of that individual’s team (within-group RPF) or on other teams (between-group RPF). We predict a negative effect of within-group RPF on individual performance. We also predict that between-group RPF moderates that negative effect, since it encourages individuals to focus on group goals rather than individual goals. Consistent with our predictions, results show that the negative effect of within-group RPF on individual performance is mitigated by between-group RPF. Our results can help accountants to better understand how the effects of relative performance feedback differ according to the predominant comparison target.     

Economic openness and trade linkages of China: An empirical study of the determinants of chinese trade intensities from 1993 to 1999

In the 1980s, the Chinese regime took a number of piecemeal steps toward economic liberalization. This process accelerated impressively in the 1990s. This paper reports an empirical study into the determinants of the emerging pattern of Chinese trade (export and import) intensities in the liberalization decade by exploring international trade statistics for 1993 and 1999. Four models are estimated that explain the shifts in the export and import intensities of the trade with different trade partners in the 1993–1999 period. The estimation results reveal differences for export vis-à-vis import trade intentities, as well as for 1993 compared to 1999. For example, the political determinants of trade intensities that were still very important in 1993 have been moved to the background by economic explanations in 1999. JEL no. F14     

Foreign Direct Investment and Trade: A Causality Analysis

In this article, we analyze the relationship between outward foreign direct investment (FDI) and exports, using Spanish quarterly data for the period 1977–1998, by means of Granger causality tests in a cointegration framework. Our results point to the existence of a relationship of complementarity between both variables, with Granger causality running in the short run from outward FDI to exports, and bilateral Granger causality in the long run.     

On the performance of the Chow-Lin procedure for quarterly interpolation of annual data: Some Monte-Carlo analysis

Most of the countries of the OECD offer quarterly estimates of their national growth or of their Gross National Product. Official Statistical Agencies in western countries have to deal with the problem of estimating Quarterly National Accounts series congruently with Annual National Accounts. In Spain, the Instituto Nacional de Estadística uses the Chow-Lin disaggregation method, which is based on information provided by a group of high-frequency related variables, to estimate the quarterly components of National Accounts from annual components. In this paper, we analyse the relative quality of the estimates obtained through the Chow-Lin procedure, under different sets of hypotheses.JEL Classification: C15, C43, M40We are grateful to Maria Amparo Ripoll for her assistance. The authors also wish to thank three anonymous referees and an editor for their constructive suggestions and comments. This research was partially made during the stay of the first author at the Universidad Carlos III de Madrid. It has been partially supported by the research project DGCYT PB98-1460.