A COMPARISON OF THE FINANCIAL CHARACTERISTICS OF U.S. AND EUROPEAN MANUFACTURING FIRMS

Gulser Meric, T. Jerome Bentley, McCALL W.Charles and Ilhan Meric
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Gulser Meric: Rowan University, Glassboro, New Jersey, USA
T. Jerome Bentley: Rider University, Lawrenceville, New Jersey, USA
McCALL W.Charles: Rider University, Lawrenceville, New Jersey, USA
Ilhan Meric: Rider University, Lawrenceville, New Jersey, USA

Studies in Business and Economics, 2016, vol. 11, issue 2, 58-67

Abstract: Comparing the financial characteristics of firms in different countries and regions has been a popular research topic in finance. In this paper, we compare the financial characteristics of U.S. and European manufacturing firms with the MANOVA (Multivariate Analysis of Variance) method and financial ratios. Our findings indicate that the overall financial characteristics of U.S. and European manufacturing firms are significantly different. We find that U.S. manufacturing firms are more profitable and they have less liquidity and bankruptcy risks compared with European manufacturing firms. European manufacturing firms are more efficient in managing their fixed assets. However, U.S. manufacturing firms are more efficient in managing their accounts receivable and total assets. U.S. manufacturing firms are able to achieve significantly higher sales and total assets growth rates compared with European manufacturing firms.

Keywords: Financial Characteristics; U.S. manufacturing firms; European manufacturing firms; MANOVA (Multivariate Analysis of Variance) (search for similar items in EconPapers)
Date: 2016
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