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The purpose of this research is to contribute new and relevant information about the early adoption of integrated reporting in an emerging economy, in this case the Chilean economy, with emphasis on the reasons for its use, the perceived benefits, and the difficulties experienced during the process of adoption. Methodologically, this work uses a qualitative approach, utilising semi-structured interviews as a data collection instrument that are applied to the managers in charge of preparing this reporting for a sample of companies that trade on the Chilean stock exchange. These interviews were interpreted using an analysis of their content. The results obtained are in accordance with the literature and the empirical evidence, with the characteristics belonging to an emerging economy and highlighting the importance of communicating with the stakeholders. The relationship with the stakeholders and the inclusion in international contexts were the most valued. It is also highlighted that all of the companies analysed declare sustainability as a strategic focus, which is an infrequent situation in developing economies. One limitation of this work is the low valuation and use that market agents still assign to integrated reporting in Chile, which affects the degree of preparation and utilisation, and could be explained by other types of incentives and motivations.

This paper studies the reaction of share prices in the Chilean securities market at the sectoral level to the arrival of COVID-19 in the country. The following question is answered: Did the Chilean market act efficiently before the arrival of COVID-19? To answer this question, an event study using a 10-day investment return window was applied to the industrial sectors that make up the IPSA (Selective Stock Price Index). To obtain the abnormal returns (AR) and cumulative abnormal returns (CAR) for the event window, three models were used: (1) adjusted average return, (2) adjusted market return, and (3) the market model. The results of the study show an overreaction to market losses, except in the utilities industry, causing greater losses after the event, which shows that information is slow to be incorporated in the previous stage and suggests that the prices of the assets do not reflect all the information available in the market. A significant finding is that the Chilean stock market responded inefficiently in the face of the arrival of the pandemic. This information is useful for investors in the formation of portfolios and/or investment strategies with a view to the long term This research received support from the Family Business Chair of the University de Lleida.

Recent financial scandals and the global financial crisis have generated numerous criticisms of the value and use of annual financial and sustainability reports prepared by companies. This has generated the elaboration and use of a new model of corporate-information reporting that considers strategic, social, economic, and environmental aspects. This study synthesizes the knowledge of the use of integrated reporting as a source of information, and bibliometrically analyzes of 268 articles published in the Web of Science database in 2011–2019. Results show that 77.6% of the academic articles were from developed countries, and the five most influential countries are Italy, South Africa, Australia, the United Kingdom, and the United States. Results show that the development of this type of research is scarce in emerging economies. The most influential authors are García, Rodríguez, and De Villiers. A high level of interconnections is observed in used keywords, of which the most used are ‘sustainability’ and ‘management’. Lastly, this article contributes to the international discussion on integrated reporting by carrying out a structured review of the literature, highlighting previous research.

The generational change in the family business opens up expectations of strategies such as sustainability, professionalisation and internationalisation. Yet, there are gaps in current literature which fail to explain whether there are benefits in such strategies according to their management, their generational status, and their effects on performance. This paper compared first with second and later generation companies through the relevant characteristics. A regression analysis was applied to a sample that was identified by the Spanish Family Business Institute with information on growth strategy, corporate governance, professionalisation, and ownership, that is supported by financial data for the period of 2016-2020. The results showed that, although the differences in terms of profitability were small between generations, there were significant differences in management that affected performance. Growth tended to be lower in the second and subsequent generations, which also h a greater tendency to internationalise, being motivated by the professionalisation of management. Previous works in the literature have analysed differences in profitability between generations, however the analysis in this present work investigated the origin of these differences. The results showed disparities in management that allowed for the obtaining of different profitability indices, and therefore are of practical importance in the management of the internationalisation, growth, and sustainability of the family business in the face of intergenerational succession. This research was funded by The Spanish Ministry of Economy and Competitiveness, grant number ECO2016-79392-P.

This article addresses the problem of succession in family farms in a context of generational change. Family businesses are characterized by their long-term orientation and by having a positive effect through environmental goals that remain in place generation after generation. The general increase in average age among farmers is seen as a barrier to more sustainable land use, and the survival of family farming therefore depends on the availability of a successor in the family. Socioemotional wealth (hereafter, SEW) is understood as the affective endowment of family members. This study adopts the SEW dimensions conceptually validated to analyse the effects of psychological and socioeconomic factors on potential successors’ intentions. The results of a survey administered to students attending agricultural schools in Catalonia show that intentions to assume the management and ownership of the family farm increase in line with individuals’ interest in creating their own business, their ability to take over the farm, and their emotional inclination to continue the family legacy. In addition, SEW was measured in relation to the potential successor and not the incumbent, as has typically been the case in previous work, bringing this important research subject as a principal actor. Finally, an empirical validation of a short FIBER scale, i.e., REI scale, was obtained that relates individuals’ intentions to succeed the family farm to the socioemotional wealth of business families, testing suitability of the REI scale as a measure of intention to succeed.

This paper examines the influence of CEO characteristics on the internationalization of family businesses. The study is based on Upper Echelons Theory, where organizational performance is related to the cognitive foundations and values of the managers of the family business. This work aims to contribute to the construction of a link between research in management teams and theoretical studies on family businesses. Using Probit and Tobit regression analyses on a sample of 1005 Spanish family businesses, this study demonstrates that CEOs with some specific characteristics are more likely to adopt some strategies for the internationalization of a company. For example, the type of studies undertaken by the CEO or the existence of a consensual strategic plan within the family business are positively linked to the adoption of an exportation strategy. Also, previous professional experience outside the family business or being a first-generation family member contributes to going international via establishing strategic alliances, while being a tenured CEO shows a positive effect on an internationalization strategy based on direct investment, but a negative effect on the establishment of strategic alliances. Finally, a family member CEO negatively affects an internationalization strategy based on direct investment. The results also affirm that the internationalization strategy is determined by the size of the business and the sector in which it operates. Open Access funding provided thanks to the CRUE-CSIC agreement with Springer Nature. This work was supported by The Spanish Ministry of Economy and Competitiveness under Research Project ECO2016-79392-P.

Purpose Research has demonstrated that family businesses limit the goal of maximizing profits in exchange for maintaining control of the company and passing control to future generations. However, these decisions are not always shared by the stakeholders who are outside the family context, making tensions arise within the company that may affect profitability and the share prices of the family business. The purpose of this paper is to analyse the internal tensions in family businesses in the value-added (VA) distribution, and whether these tensions harm their performance as a result of the restrictions under which these companies operate. Design/methodology/approach A factor analysis has been used to measure the tension that results from VA distribution of a sample of 105 Spanish listed firms for the 2005-2012 period. A regression analysis has been used to study the impact of this tension on their share prices. Findings Results show that being a family business has a positive effect on the business tension factor and that returns and share prices are inversely related to tension factors. Thus, the authors conclude that the decision to maintain control over the family business threatens profitability and share prices. Social implications An analysis of distribution of VA in family businesses sheds light on whether or not the management in its decisions preserves its socioemotional wealth (SEW) generating tensions among its economic agents, affecting its profitability and continuity. This knowledge is important for company stakeholders and future investors. Originality/value This is the first study in which the value-added statement is used to analyse how the management style of firms, and especially family businesses, are seeking to preserve their SEW and internal tensions generated by them.

The aim of this study is to analyse whether the great shock occasioned by the financial crisis and the reaction from national governments have compromised the process of financial integration in the EU. This question is important because banking union is a cornerstone of the European integration process. We estimated the evolution of cost and profit efficiency in the enlarged EU during the period from 2000 to 2013 using Bayesian frontier stochastic models (SFA), and analysed the convergence among countries using the beta and sigma convergence tests. Our results show that the outbreak of the financial crisis interrupted the convergence and gave rise to a new divergence process. These results suggest that major reforms in European banking should be adopted by EU regulators in order to strengthen financial integration.

El objetivo del estudio es analizar la existencia de un proceso de convergencia en materia de eficiencia bancaria en costes entre los nuevos miembros de la UE y los paises de la UE-15. Para ello se estiman los niveles de eficiencia de una muestra de 27 paises europeos en el periodo 2000–2008 y se analiza su convergencia β y σ. La estimacion de dichos niveles se lleva a cabo mediante tecnicas bayesianas de estimacion y comparacion de modelos aplicadas a diversos modelos de frontera estocastica (SFA) aplicados a datos de panel no balanceado. Los modelos comparados difieren en las hipotesis sobre la frontera y la distribucion de los terminos de eficiencia, todo lo cual dota al estudio realizado de un mayor grado de robustez. Los resultados obtenidos ponen de manifiesto la existencia de un proceso de convergencia en la UE ampliada. Ademas, mediante un modelo de ajuste parcial se observa que, si bien los niveles de eficiencia han tendido a aumentar con la integracion europea, dicha convergencia no se produce h...

While much has been studied regarding the wine industry in Spain and France, little has been studied in developing countries. The aim of this work is to study the characteristics of dynamic wine firms in Chile. This paper presents qualitative research and reports six cases of wine companies, where several variables are analyzed according to Barringer, Jones and Neubaum framework. These variables include prior experience, founders' knowledge regarding large company management, the use of strategic-planning systems and the use of new technology in the majority of its production. The results of this research could prove insightful for wine entrepreneurs looking to enhance their growth, based on greater differentiation and innovation, and not only on being competitive in pricing. RESUMEN Mientras mucho se ha estudiado sobre la industria vitivinícola en España y en Francia, poco se ha estudiado en países en desarrollo. El objetivo de este trabajo es estudiar las características de emprendimientos vitivinícolas dinámicos en Chile. El trabajo presenta un estudio cualitativo y reporta seis casos de estudio, donde una serie de variables son analizadas según el modelo de Barringer, Jones y Neubaum. Entre estas variables destacan: experiencia previa, conocimiento de fundadores en gestión de grandes negocios, uso de sistemas de planificación estratégica y uso de nuevas tecnologías en la mayor parte de su producción. Los resultados de este trabajo podrían ser interesantes para emprendedores vitivinícolas que buscan potenciar su crecimiento con diferenciación e innovación, y no solo compitiendo en costo. RESUMO Enquanto muito se tem estudado sobre a indústria vitivinícola na Espanha e na França, pouco tem sido estudado em países em desenvolvimento. O objetivo deste trabalho é estudar as características de empreendimentos vitivinícolas dinâmicos no Chile. O trabalho apresenta um estudo qualitativo e relata seis casos de estudo em que um número de variáveis são analisadas de acordo com o modelo de Barringer, Jones e Neubaum. Essas variáveis são: a experiência anterior, o conhecimento dos fundadores na gestão de grandes empresas, a utilização de sistemas de planejamento estratégico e a utilização de novas tecnologias na maior parte de sua produção. Os resultados deste trabalho podem ser interessantes para os empresários vitivinícolas que procuram melhorar o seu crescimento com a diferenciação e inovação, e não apenas competir em custo.

The main objective of this study is to analyse the evolution of banking efficiency in the Baltic countries after their accession to the EU and during the financial crisis, and to check whether there are significant differences between these countries as a consequence of their particular characteristics. To that end, we have estimated the evolution of cost and profit efficiency in the Baltic countries in the context of the enlarged EU during the period 2000–2013 using Bayesian stochastic frontier models. Our results show the greater robustness of Estonian banking in terms of profits during the financial crisis in comparison to their neighbours. Additionally, Baltic banking has recovered its profit efficiencies very quickly after the financial crisis. However, cost efficiency is still at low levels in line with the other European countries. This work was supported by The Spanish Ministry of Economy and Competitiveness under Research Project ECO2012-35029 and ECO2016-79392-P; the DGA Project 269189/3 (Grupo Consolidado S11); Universidad de Zaragoza Project UZ-2016-SOC 07 269209, and Institut de Desenvolupament Social i Territorial (INDEST).

Las NIIF (Normas Internacionales de Información Financiera) son un cuerpo de normas contables emitidas por un organismo denominado IASB (International Accounting Standards Board). Se trata de normas con vocación internacional, esto es, creadas con la intención de que se admitan en el mayor número posible de jurisdicciones y, con ello, incrementar la comparabilidad en los estados financieros a escala mundial.

Purpose: The main objective of this article is to go in-depth into the relationship between going concern audit opinion and certain characteristics of the company and auditor, including financial decline. Design/methodology/approach: A Logit analysis was carried out in order to enable us to discover the probability of receiving a going concern audit opinion. Findings: Characteristics of the company and characteristics of the auditor are discussed, and the analysis indicates that it is not financial decline, but rather registering losses and being audited by a small-scale auditor, that increase the likelihood of a company receiving a going concern audit opinion. Practical implications: The results obtained are interesting for the profession and users because they provide evidence of the reasons that converge in the cases where a going concern audit opinion is included in the auditing reports of companies characterised by being immersed in a financial crisis. Originality/value: This article considers the circumstances of both the company and the auditing process, which influence the fact that the auditing report includes a going concern audit opinion. In addition, the article includes the financial decline, and let us to analyze if the decline of the company’s financial position between t-1 and t causes the auditor to include a going concern audit opinion.

The aim of this study is to analyze how banking ownership affects banking efficiency in countries which have recently experienced the European integration process more intensely. Using a Bayesian Stochastic Frontier Approach (SFA) applied to panel data, we have estimated efficiency levels in a sample of 226 banks from 12 countries during the period 2000 to 2008. The results show no significant differences between different types of private ownership, questioning the relevance of ownership as a determinant of banking efficiency in these countries. In addition, we have not found any evidence to suggest that foreign ownership is more efficient than its domestic counterpart. These results contradict the popular belief about the higher efficiency levels associated with foreign ownership.

The aim of this study is to analyze the influence that the European integration process has had over the banking efficiency levels in those countries which have recently experienced more intensely the European integration process. For this purpose we have analyzed, using stochastic frontier models (SFA), applied to panel data, bank efficiency levels of a sample of 240 banks from 12 countries during the period 2000 to 2008. The results sustain the hypothesis that the European integration process has significantly improved the efficiency levels in these countries. However, the improvements haven't appeared simply by the accession to the EU, but have appeared during the process. In order to illustrate the results, we have analyzed the banking system in Romania in the context of the European integration, a country which because of the delay in the initiation of the reforms, despite belonging to the EU, it hasn't still recorded the essential improvements in banking efficiency associated to this process that the other new members have already experienced.

This paper analyses the financial impact of the enlargement of the European Union (EU) to include 10 new Central and Eastern European Nations (CEEN) on firms’ business and financial structures. To this end, we employ quantitative analytic techniques and financial ratios. In this context, we hope to discover whether firms in the new EU member States tend to converge with business in the Europe of the 15 in terms of the structure of firms’ financial statements. We examine the extent to which the increasing integration of the former may foster the convergence of productive structures. The methodology followed consists of an analysis of the evolution of 12 financial ratios in a sample of firms obtained from the AMADEUS data base. To that end, we perform a Dynamic Factor Analysis that identifies the determining factors of the joint evolution of deviations in the financial ratios with respect to the average value of firms in the EU-15. This analysis allows us to analyse the convergence in each of the CEEN nations with respect to the EU-15.

El presente trabajo tiene por objetivo analizar si durante el periodo de transicion, previo a la incorporacion a la Union Europea se ha producido un acercamiento de las estructuras economico financieras de las empresas de los nuevos estados miembros respecto a los de la Europa de los quince (EUR15). La metodologia aplicada consiste en un analisis factorial dinamico sobre una muestra de empresas obtenida de la base AMADEUS, que nos permite obtener los factores determinantes de la evolucion conjunta de las variables a partir del calculo de la distancia entre las puntuaciones factoriales. Al fi nal hemos identificado tres factores: Rentabilidad Vs Coste de la Deuda, Productividad y Endeudamiento, pero tan solo en el primero se observa cierta convergencia. Por paises, en Eslovenia se produce la mayor convergencia respecto a EUR-15 impulsada por la entrada de capital ajeno, mientras que los mas divergentes son Lituania y Hungria resaltando en ambos su bajo endeudamiento.

In this paper we propose a multivariate extension of the partial adjustment model of financial ratios. To that end, we use a dynamic factor model which assumes that financial ratios measuring, essentially, the same economic–financial dimension of the firm evolve in a similar way, reflecting the evolution of the common factor. The proposed model is hierarchical with three levels. The first describes the relationship between each ratio and its common factor; the second describes the evolution of the common factors over time by means of Lev's (1969) partial adjustment model; and the third analyzes the similarity of firms' adjustment coefficients, taking into account their characteristics. The methodology is applied to the analysis of a set of financial ratios related to the business and financial structure of the firm. Copyright © 2008 John Wiley & Sons, Ltd.

PurposeThe purpose of this paper is to examine the relevance of accounting variables to explain the evolution of a company's share price; and more specifically, we analyse the influence of cash flow and book value on the evolution of the share price, taking into account certain covariates which have traditionally been regarded as helping explain this effect.Design/methodology/approachA hierarchical Bayesian model is used to analyse the relevance of the accounting figures considered by the markets.FindingsThe empirical results obtained show that the firm size and the speed of asset turnover are a company's most relevant features, which is indirectly consistent with the theory of company life cycles.Originality/valueThe empirical results obtained are of value to support the validity of company life cycle theory.

El trabajo presenta un analisis exploratorio usando el criterio BIC para diferenciar empresas entre grupos que establecen relaciones entre el precio de las acciones y variables de informacion contable como el Cash Flow y el Valor Patrimonial en Libros. Los grupos obtenidos son analizados sobre medidas caracteristicas como tamano, politica de dividendos y de inversion, rentabilidad y rotacion de activos con el fin de extraer las diferencias de las empresas existentes en cada uno de dichos grupos. Los resultados empiricos obtenidos son consistentes con la teoria del ciclo de vida de la empresa. En particular, el valor de mercado de las empresas pequenas tiende a estar mas influido por el Cash Flow mientras que el de las empresas grandes tiende a estarlo por el valor en libros.

Objecte: En aquest estudi es porta a terme un anàlisi comparatiu sobre l’evolució de l’estructura econòmica i financera que presenten les empreses familiars i no familiars de Catalunya en un context d’intensa crisi econòmica. La seva finalitat és poder donar resposta a dos qüestions principals: identificar les característiques diferencials de l’EF respecte a l’EnF i comprovar si aquestes característiques diferencials han permès a les EF aguantar millor la crisi econòmica. Disseny/metodologia: S’ha analitzat una mostra de 750 grans i mitjanes empreses de Catalunya (550 familiars i 200 no familiars) durant el període 2008-2012. Les dades s’han obtingut a través de la base de dades SABI, i per a la classificació de les empreses en familiars i no familiars s’ha dut a terme una comprovació individual de cadascuna d’elles per evitar habituals errors de classificació. Posteriorment les empreses s’han classificat en funció de la seva dimensió per dotar d’una major robustesa els resultats. També s’ha procurat que la distribució d’empreses per sectors fos similar en les diferents categories per evitar que un efecte sectorial pogués tergiversar els resultats de l’estudi. Aportacions i resultats: L’estudi ha permès constatar les hipòtesis establertes sobre el finançament de les empreses familiars i concloure que aquestes presenten una estructura financera diferent a les Empreses no familiars. Les empreses familiars als seus balanços, presenten un major nivell d’autofinançament gràcies a la seva menor distribució de dividends. A més a més, les EF presenten millors resultats en quant a nivells de cobertura i liquiditat, ja que es troben més capitalitzades i presenten uns nivells d’endeutament inferior que les Empreses no familiars. Aquestes característiques patrimonials i financeres han contribuït a que les empreses familiars aguantin millor els anys de crisi, produint-se durant aquests anys, una menor proporció d’empreses familiars que han presentat pèrdues. Limitacions: En aquest estudi s’han classificat com empreses familiars aquelles on a més a més de la propietat, algun membre de la familiar també participava de la gestió de la mateixa. No obstant, estudis previs defensen que no totes les empreses familiars comparteixen les mateixes característiques, i que per tant, altres factors s’haurien de tenir en compte. Per això, en futurs desenvolupaments del treball es podrien considerer altres característiques per subclassificar la mostra, com per exemple, la participació d’un membre de la família com a CEO o l’edat de l’empresa. Per altra banda, en aquest estudi únicament s’han analitzat grans i mitjanes empreses, serà interessant veure si existeix una coincidència de resultats en les petites empreses. Valor afegit: Diversos treballs han analitzat les característiques diferencials de les empreses familiars, mentre que altres treballs han analitzat els efectes de la crisi en el teixit empresarial. No obstant, aquest treball conjuga els dos enfocaments, i analitza si aquests trets característics de l’empresa familiar han permès que estiguessin millor preparades que les empreses no familiars a l’hora d’afrontar l’actual crisi econòmica, un aspecte poc abordat fins ara en la literatura recent. Purpose: In this study we have analyzed the evolution of the economic and financial structure of family and non-family Catalan firms in a context of a deep economic crisis. The aim of this study is to answer two main questions: identify which characteristics differentiate family firms from non-family firms, and test if these characteristics have allowed them to better weather the economics crisis. Design/methodology: We have analyzed 750 large and medium-sized enterprises from Catalonia (550 family firms and 200 non-family firms) during the period 2008-2012. The data have been taken from the SABI dataset. A one-to-one checking has been taken to classify the firms as family or non-family firms to avoid common classification mistakes. Subsequently, we have classified the firms according to the dimension to provide more robust results. To avoid a sectorial effect on the results, all categories considered are homogeneous in terms of sector. Findings: The results have supported our hypothesis about the family firm’s financing and lead us to conclude that family firms have a different financial structure from non family firms. Specifically, family firms have a higher level of self-financing due to their reduced distribution of dividends. Moreover, family firms show better levels of coverage and liquidity because of its higher capitalization and lower debt in comparison to family firms. These economic and financial characteristics have helped family firms to better weather the crisis, with a lower proportion of loss-making enterprises. Research limitations/implications: In this study we have considered as a family firms those enterprises in which at least one member of the owner family participates in the management. However, some studies affirm that not all the family firms have the same characteristics and suggest that other factors have to be considered in the classification. For this reason, other characteristics should be considered in future developments of this study, for example, the presence or absence of a family member as a CEO, or the age of the company. Furthermore, in this study we have only included large and medium-sized enterprises, so would be interesting analyze whether the results are consistent for a small-firms sample. Originality/value: Some studies have analyzed which characteristics differentiate family firms from non family firms, while other studies have analyzed the effects of the economic crisis on businesses. However, this study combines both approaches and analyzes if these characteristic features have allowed family firms to be better prepared to overcome the economic crisis, a so far understudied issue in the literature

In this paper, we consider the problem of estimating the parameters of a matrix normal dynamic linear model when the variance and covariance matrices of its error terms are unknown and can be changing over time. Given that the analysis is not conjugate, we use simulation methods based on Monte Carlo Markov chains to estimate the parameters of the model. This analysis allows us to carry out a dynamic principal components analysis in a set of multivariate time series. Furthermore, it permits the treatment of series with different lengths and with missing data. The methodology is illustrated with two empirical examples: the value added distribution of the firms operating in the manufacturing sector of the countries participating in the BACH project, and the joint evolution of a set of international stock-market indices.

This paper is devoted to an analysis of financial ratio adjustment in European financial statements. To that end, we use an hierarchical model based on the partial adjustment model. This model allows us to distinguish between adjustments that are due to external shocks and which affect all countries, on the one hand, and those resulting from internal shocks which affect the relative position of one country with respect to the rest, on the other. In addition to estimating the average adjustment coefficients of each ratio, we locate those countries that have a behaviour which is significantly different from the rest. We find that, in general, the evolution of the ratios analysed is mainly determined by their adjustments to external shocks, with the ratios related to the profit and loss account demonstrating a greater sensitivity to all types of shocks. By contrast, the debt ratios show the least sensitivity. When considered on a country-by-country basis, the most significant differences appear in the result...

This paper contributes to our understanding of the behavior of financial ratios by means of a hierarchical Bayesian analysis of the partial adjustment model of financial ratios presented in Davis and Peles [Acc. Rev. 68 (1993) 725]. Such an approach allows us to make a robust estimate of the average adjustment coefficient of a set of firms. The proposed methodology is applied to the analysis of a number of financial ratios considered in the above-mentioned paper corresponding to a sample of US manufacturing firms.

In this paper, we propose a multivariate dynamic linear model (MDLM) that allows us to carry out a dynamic principal components analysis in a set of multivariate time series and to analyse the similarity in their evolution once the influence of non-stationarity in each of them has been removed. In order to illustrate the methodology, we consider the distribution of value added of the firms operating in the Spanish Transport Material Manufacturing sector. Copyright © 2003 John Wiley & Sons, Ltd.

Firms are managed on the basis of relationships between mutually involved groups, not only because of market forces, but also due to the influence that each group can exert over distribution decisions at a given moment in time. On the basis of a value added statement, it is possible to analyse the ability a firm has to reward all agents and to consider how the residual income is to be distributed. In this paper we set out to establish the tensions that arise between productive agents in the distribution of generated wealth. We carry out a time analysis of the movements between relationships that provide information on the distribution of that wealth, using data drawn from the Spanish Transport Equipment Manufacturing Industry. We propose a new multivariate dynamic linear model that is capable of analysing the joint evolution of the value added distribution ratios, with our particular objective being to throw light on the factors underlying this evolution. This analysis results in one single factor that explains 92.88 per cent of the total variation present in the residuals of the model.

In this paper, we propose a Bayesian hierarchical model based on the partial adjustment model described by Wu and Ho (Rev. Quant. Finance Acc. 9 (1997) 71). The proposed model allows us to estimate the average adjustment coefficients associated with the error correction component and with the sensitivity of the firm to exogenous factors that have an industry-wide effect. Using the proposed model, we analyse the financial ratios calculated by The Bank of Spain’s Central Balance Sheet Office (CBSO) corresponding to the Spanish manufacturing sector during the period 1986–1997. In almost all the ratios analysed, we find that the error correction component exerts a greater influence, with the Interest Expense to Liabilities ratio demonstrating a greater sensitivity to this effect; by contrast, factors endogenous to the firm have more influence over the Indebtedness ratio. When considered by sectors, we find that it is the Transport sector which enjoys the greatest capacity for manoeuvre in the Profitability and Indebtedness ratios.

The results of recent macroeconomic studies have consistently reflected economic convergence among the Economic and Monetary Union (EMU) countries. In this paper, we propose to analyse financial measures to discover whether or not the business structures of the EMU countries have grown any closer together. The study is based on a non‐linear principal components analysis in order to achieve a double objective. In the first place, the aim is to find out which factors have been significant for the joint evolution of financial variables over a ten‐year period (1990 to 1999). In the second place, it is to examine the performance of firms in each of the EMU countries in order to assess business convergence between them. The results of the study indicate high levels of convergence in the profitability vs. leverage dimension, while structural differences between countries in the labour productivity vs. sales efficiency dimension have hindered convergence in business practices.

Purpose: Identify similarities and/or differences in the distribution of Value Added characterizing family businesses as opposed to non-family held firms, and analyse productivity by linking the distribution of the wealth generated by the company to a variety of related agents or stakeholders(employees, providers of loan capital, and shareholders). Design/methodology: A data series consisting of VA distribution in a sample of 8,609 Spanish companies, of which 5,109 are family firms and another 3,500 companies which are not, for the period comprising 2008 to 2013 was employed for this study. The data from the financial statements pertaining to these companies was taken from the SABI system (a privatelyfunded database analysing the financials of Spanish and Portuguese firms, operated by INFORMA, SA), selecting only those companies that employ standardized financial reporting practices. Findings: The work shows the existence of significant differences between family and nonfamily businesses in the distribution of value added among the different stakeholders. Given that, although both types of company spend most of the value added to remunerate staff, the family company spends a higher proportion thereof on self-financing as compared to nonfamily businesses, which spend a higher percentage on the remuneration of firm ownership. On the other hand, the lower labour productivity of family businesses is apparent, a result that can be explained both by the lower staff monetary remuneration, as well as the use of production technologies that are also less capital-intensive. Research limitations/implications: The study included only medium and large companies. These are companies that report financial statements offering more disaggregated data (through use of the standard forms).This owes to the legal requirement of these companies to file a cash flow statement, a necessary source for deriving information on dividends paid by the company. Originality/value: This is the first study in which the workings of added value are used to analyse the presence of measurable management differences in a large sample of companies using family ownership as the main criteria for differentiation.

This study develops a dynamic model of optimization of the value of the company following the postulates of the theory of Trade-Off. The model includes Bystrom formulation for calculating the cost of bankruptcy in the search the optimal debt. Our model is innovative in several respects: 1) raises calculate the cost of bankruptcy easily. This model is easy to implement in firms 2) calculates the cost of debt endogenously. 3) The calculation is dynamic. We determine the cost of debt and the cost of capital for each unit of additional debt. The proposed model has been applied to the companies that make up the Dow Jones Industrial Average (DJIA) in 2007. We have used consolidated financial data from 1996 to 2006, published by Bloomberg. We have used simplex optimization method to find the debt level that maximizes firm value. Then, we compare the estimated debt with real debt of companies using statistical nonparametric Mann-Whitney. The results indicate that 63% of companies do not show a statistically significant difference between the real and the estimated debt.