Copenhagen Business School

About: Copenhagen Business School is a education organization based out in Copenhagen, Hovedstaden, Denmark. It is known for research contribution in the topics: Corporate governance & Entrepreneurship. The organization has 2194 authors who have published 9649 publications receiving 341898 citations.

The Firm in Economic Geography

Abstract: This article is concerned with the alleged absence in economic geography of a particular microtheoretical foundation that spells out precisely what makes the central actor of the subdiscipline, “the firm,” behave and perform the way it does. It especially maintains that economic geography is characterized by the lack of a clear conception and understanding of why this specific form of organizing economic activity exists and prevails in a specialized exchange economy, the factors conditioning its size and boundaries, and the endogenous mechanisms that influence its mode of external interaction. The article proposes that theories developed in neighboring fields—particularly economics—can be identified, selected, and subsequently applied within economic geography by developing a selection mechanism based on a few simple criteria.

The causal effect of board size in the performance of small and medium-sized firms

Abstract: Empirical studies of large publicly traded firms have shown a robust negative relationship between board size and firm performance. The evidence on small and medium-sized firms is less clear; we show that existing work has been incomplete in analyzing the causal relationship due to weak identification strategies. Using a rich data set of almost 7000 closely held corporations we provide a causal analysis of board size effects on firm performance: We use a novel instrument given by the number of children of the chief executive officer (CEO) of the firms. First, we find a strong positive correlation between family size and board size and show this correlation to be driven by firms where the CEO’s relatives serve on the board. Second, we find empirical evidence of a small adverse board size effect driven by the minority of small and medium-sized firms that are characterized by having comparatively large boards of six or more members.

Local, regional, or global? Quantifying MNE geographic scope

Abstract: This paper proposes a multidimensional index of regional and global orientation that can be used in confirmatory studies with econometric methodologies. Unlike extant measures, the index is objectively scaled, and controls for home country orientation and market size differences. The index is shown to be consistent with models of internationalization that incorporate different assumptions about investment choice and global competition. Preliminary results show that large multinationals follow home region oriented internationalization paths, although much of the regional effect reported by previous studies in fact reflects strong home country biases.