Browsing by Author "Fariñas, José C."

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    Firms’ growth, size and age: a nonparametric approach
    (Springer, 2000) Fariñas, José C.; Moreno Martín, Lourdes
    This paper offers empirical evidence of firm failure rates as well as the mean of the distribution of realized growth rates, distinguishing between the sample of non-failing firms and the sample of all firms, failing and non-failing. Attention is directed at identifying a set of characteristics, in particular the size and age of firms, systematically related to the patterns of firm growth and exit, using a panel of Spanish manufacturing firms. The two main contributions of the paper are the use of nonparametric techniques and the analysis of issues ignored in other studies like the regression-to-the-mean bias and the measurement of learning effects. We find evidence that failure rates and the mean growth rate of successful firms decline with size and age. When failing firms are integrated, there are no significant differences in the mean growth rate across the age and size of firms. Regression-to-the-mean does not prove to be a substantial factor behind the negative relationship between size and growth of surviving firms.
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    The Scope, Scale and Locational Preferences of Spanish Multinationals
    (2018-04-06) Mainer Casado, Carolina; Fariñas, José C.; Moreno Martín, Lourdes
    This paper examines the relationship between firms’ heterogeneity and their multinational activity. We examine the scope and the scale of multinational firms following the insights of Yeaple’s (2009) model. The goal of the paper is to contribute to a better understanding of the activity of Spanish multinationals using a sample of Spanish multinational firms. Our dataset is built from two databases, SABI and ORBIS, both from the Bureau van Dijk. Our results confirm that more productive firms have a greater multinational activity in terms of both the scope (the number of foreign markets where they invest) and the scale (the volume of local sales by subsidiaries in foreign markets). The structure of Spanish multinational firms’ activity is also analysed from the perspective of host country characteristics (GDP, population, distance and language) using standard gravity equations. Country characteristics that are positively associated (GDP and common language) with the volume of multinational activity are negatively related to the productivity of firms that go abroad. This asymmetry also holds for bilateral characteristics as distance that appears negatively associated with the level of multinational activity.