Paper: «Development and Business Strategy»
Authors: Matías Braun and Luis Felipe Céspedes
Abstract: Based on textual analysis of 20-f reports we classify the business strategy of firms in many countries and the last 15 years. Firms that pursue prospector or innovation-based strategies invest more in R&D, less in fixed assets, use less debt, perform better, and are more productive than firms that follow a cost-based strategy. The degree to which the strategy of a country’s firms is innovation-based explains part of the variation in its level of development, particularly in the total factor productivity component. Strategy adoption is dependent on institutions and the quality of management. Firms and countries perform better when the strategy of firms matches the resources and institutions available at each stage of development.
Presenter Bio: Matías Braun, Ph.D en Economía de Harvard University. Profesor titular de ESE Business School de la Universidad de lo Andes, además de Director de Redbanc y de CredicorpCapital AGF y Consultor de empresas, en materias económicas y de inversiones
Se especializa en mercados financieros, finanzas corporativas, finanzas internacionales y desarrollo económico. Ha publicado en prestigiosas revistas internacionales y ha presentado su trabajo en los principales centros de estudios de Estados Unidos.
Fue profesor titular de la Universidad Adolfo Ibáñez y profesor asistente en University of California Los Angeles.
