Browsing by Author "Mas-Ruiz, Francisco J."

Now showing 1 - 7 of 7
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    Asymmetric rivalry between strategic groups: Response, speed of response and ex ante vs. ex post competitive interaction in the Spanish bank deposit market
    Mas-Ruiz, Francisco J.; Nicolau, Juan Luis; Ruiz-Moreno, Felipe (Wiley, 2005-08-01)
    The objective of this study is to examine asymmetric rivalry between strategic groups in a given industry. Two research hypotheses argue for the existence of asymmetric rivalry in the sense that strategic groups of small companies have a greater degree of response but a slower speed of response to the actions of strategic groups of large companies, than vice versa. To test this, we use an ex post approach that examines the news releases published on the strategic actions and reactions of firms. A third hypothesis compares ex ante competitive expectations with ex post asymmetric rivalry between strategic groups. To test this, we compare ex post news on actions/reactions with an ex ante approach that estimates conjectural variations. The empirical application carried out on bank deposits in the Spanish market defines strategic groups in terms of size due to the historical and institutional conditions of the industry (deregulatory change). The results obtained show that rivalry patterns between strategic groups in terms of company size can be predicted as asymmetric in the sense that smaller bank strategic groups have a greater degree of response (Stackelberg 'leader-follower' competitive interaction), and a slower speed of response to the actions of larger bank strategic groups than is found the other way around. Moreover, ex ante expectations of aggressiveness on the part of larger strategic groups characterize greater ex post reactions from the smaller-size strategic groups. Therefore, the size distribution of strategic groups is valuable to research on complex industries with deregulation changes.
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    The economic value of patent protection and rivalry in the Spanish electrical sector
    Sellers-Rubio, Ricardo; Nicolau, Juan Luis; Mas-Ruiz, Francisco J. (Emerald, 2007)
    Purpose: The purpose of this paper is to estimate the economic value of patent protection and the resulting rivalry. Design/methodology/approach: An event-study is applied which uses the daily returns of shares on the stock market as an output; and a model is estimated which bases its output on Tobin's q with annual observations. Findings: The results are determined by the methodology used and the measurement of the output dimensions of company performance. Both methodologies conclude that the patent application date is the determiner of the value of an innovation. The event study methodology reflects the positive value of patent protection. Research limitations/implications: The generalisation of the conclusions of the study to other economic sectors should be made with caution, given the fact that only the electrical sector was analysed. Originality/value: The literature available on this subject suggests that empirical evidence can be affected by operational problems related to the measurement of inventive input and output. As a new contribution to the field, the paper discovers the date of input (application or grant of the patent or both) on which the company manifests innovation.
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    Foreign expansion strategy and performance
    Mas-Ruiz, Francisco J.; Nicolau, Juan Luis; Ruiz-Moreno, Felipe (Emerald, 2002-08-01)
    The aim of this study is to examine the determining factors of a firm's performance, as a direct consequence of its diversification strategy in its expansion into foreign markets, considering certain factors like the market, the product and the company itself. As a novelty, the methodology employed uses the event-study to estimate the excess of returns generated by its shares on the Stock Market, based on a sample, of 35 expansion announcements into external markets corresponding to 11 diversifying companies. A regression analysis is also carried out to examine the impact of these factors, market, product and company, on the excesses in returns observed. The empirical application, carried-out in Spain, has allowed us to detect that, on average, the impact of the news about a company's expansion on the returns on its shares is positive; its determining factors being the speciality of the product offered and the level of development in the target country.
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    If the wind blows, adjust your sail: Political ideology, social responsibility, and performance
    Campayo-Sanchez, Fernando; Sharma, Abhinav; Mas-Ruiz, Francisco J.; Nicolau, Juan Luis (Elsevier, 2024-09-01)
    Drawing on the upper echelons theory and the attention theory, this study investigates the influence of a chief executive officer's political beliefs on the market value generated by corporate social responsibility investments. The empirical analysis on U.S. hotel companies over a 25-year period (1998–2022) reveals that greater misalignment between a chief executive officer's ideology and the national political climate leads to a weaker impact of corporate social responsibility-related activities on the market value. This result is significant because it suggests that chief executive officers' actions are not solely determined by their ideological stance—as the upper echelons theory predicts—but rather by the conflict they experience when the external environment contradicts their ideological beliefs, which is a theoretical extension.
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    Navigating market waves: How CEO political ideology shapes the currents of innovation-induced tourism value
    Campayo-Sanchez, Fernando; Mas-Ruiz, Francisco J.; Nicolau, Juan Luis (Elsevier, 2024-08)
    The upper echelons theory postulates that the cognitive frameworks of top executives shape organizational decisions and behaviors. Based on this theory, this study contributes to the literature by analyzing the effects of the chief executive officer’s (CEO) political ideology and political climate on variations in the market value of tourism firms resulting from their innovation activities. An empirical application was conducted on major U.S. hotel companies that have traded on the stock market for the last 25 years (1998–2022) and made innovationrelated announcements. This application shows that, although the implementation of innovative activities positively affects a firm’s market value, both the CEO’s political ideology and the political climate influence the degree of change in the said market value. This study has fundamental theoretical implications for upper echelons theory by improving the understanding of how cognitive diversity derived from political ideology influences decision-making and its outcomes.
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    Setting the Course: CEO Beliefs as the North Star in the Hotel-OTA Relationship
    Campayo-Sanchez, Fernando; Sharma, Abhinav; Mas-Ruiz, Francisco J.; Nicolau, Juan Luis (Elsevier, 2025-02-01)
    The upper echelons theory posits that a CEO's cognitive and perceptual processes, as well as their values and experiences, influence their decision-making and, consequently, their strategic choices. In the complex love-hate relationship between hotels and online travel agencies, the topic of rate parity agreements is controversial and heated, wherein a CEO's values, beliefs, and convictions potentially playing a critical role in guiding actions. This study tests this hypothesis by investigating how CEO political ideologies affect changes in hotel market value resulting from the dismissal of the U.S. rate parity lawsuit. The results reveal that the reduction in hotel companies’ market value due to the lawsuit's dismissal is accentuated by CEO liberalism. Conservative CEOs seem to prioritize shareholder interests, aligning with investor expectations for value preservation amid online travel agencies’ consolidation of market power. This study holds theoretical and managerial implications for the upper echelons theory, corporate governance, and market competition studies.
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    Two-stage choice process of FDI: Ownership structure and diversification mode
    Ruiz-Moreno, Felipe; Mas-Ruiz, Francisco J.; Nicolau, Juan Luis (Elsevier, 2007-07-01)
    Prior literature on foreign direct investment examines single-stage decision making processes based on, either the ownership structure (full vs. partial ownership), the diversification mode (Greenfield vs. acquisition), or the simultaneity of both of them (with four independent alternatives as a result of combining the ownership structure and diversification mode decisions simultaneously). This study proposes that ownership structure and diversification mode are nested and non independent decisions. However, the sequential order of the two decisions, ownership structure and diversification mode, is unknown. Thus, the current study tests the single-stage process used by previous researchers versus the two different hierarchical two-stage processes (ownership structure choice precedes diversification mode choice; and diversification mode choice precedes ownership structure choice). The empirical findings support the existence of a two-stage choice process where ownership structure choice precedes diversification mode choice. The main implication of these findings is that, given the human limited analytical capability, a hierarchical choice process can be useful to handle the information overload and the complexity inherent to the foreign direct investment choices.