A Comparison of the Financial Characteristics of European and Asian Manufacturing Firms
Comparing the financial characteristics of firms in different countries has been a popular research topic in finance. However, general financial characteristics of European and Asian manufacturing firms have never been compared. In this paper, we undertake such a study with the MANOVA (Multivariate...
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Online Access: | https://doi.org/10.1515/sbe-2017-0040 |
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doaj-33e8b99147b040edb51d0918c82efd142021-09-05T14:00:25ZengSciendoStudies in Business and Economics2344-54162017-12-0112311212510.1515/sbe-2017-0040sbe-2017-0040A Comparison of the Financial Characteristics of European and Asian Manufacturing FirmsMeric Gulser0Welsh Carol1Scarpa Robert2Meric Ilhan3Rohrer College of Business, Rowan University, Glassboro, New Jersey, USARohrer College of Business, Rowan University, Glassboro, New Jersey, USARohrer College of Business, Rowan University, Glassboro, New Jersey, USARohrer College of Business, Rowan University, Glassboro, New Jersey, USAComparing the financial characteristics of firms in different countries has been a popular research topic in finance. However, general financial characteristics of European and Asian manufacturing firms have never been compared. In this paper, we undertake such a study with the MANOVA (Multivariate Analysis of Variance) technique. Our research uses all European and Asian manufacturing firms included in the Research Insight/Global Vintage database at the end of 2015. Our findings may provide valuable insights for financial managers and global investors. We find that Asian firms tend to have less liquidity risk but more bankruptcy risk compared with European firms. European firms have more efficient accounts receivable management and higher fixed and total assets turnover rates. However, Asian firms have higher inventory turnover and sales growth rates. Return on equity is not significantly different in European and Asian firms. However, Asian firms have significantly higher net profit margin and return on assets compared with European firms.https://doi.org/10.1515/sbe-2017-0040financial ratioseuropean and asian manufacturing firmsmanova (multivariate analysis of variance) |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Meric Gulser Welsh Carol Scarpa Robert Meric Ilhan |
spellingShingle |
Meric Gulser Welsh Carol Scarpa Robert Meric Ilhan A Comparison of the Financial Characteristics of European and Asian Manufacturing Firms Studies in Business and Economics financial ratios european and asian manufacturing firms manova (multivariate analysis of variance) |
author_facet |
Meric Gulser Welsh Carol Scarpa Robert Meric Ilhan |
author_sort |
Meric Gulser |
title |
A Comparison of the Financial Characteristics of European and Asian Manufacturing Firms |
title_short |
A Comparison of the Financial Characteristics of European and Asian Manufacturing Firms |
title_full |
A Comparison of the Financial Characteristics of European and Asian Manufacturing Firms |
title_fullStr |
A Comparison of the Financial Characteristics of European and Asian Manufacturing Firms |
title_full_unstemmed |
A Comparison of the Financial Characteristics of European and Asian Manufacturing Firms |
title_sort |
comparison of the financial characteristics of european and asian manufacturing firms |
publisher |
Sciendo |
series |
Studies in Business and Economics |
issn |
2344-5416 |
publishDate |
2017-12-01 |
description |
Comparing the financial characteristics of firms in different countries has been a popular research topic in finance. However, general financial characteristics of European and Asian manufacturing firms have never been compared. In this paper, we undertake such a study with the MANOVA (Multivariate Analysis of Variance) technique. Our research uses all European and Asian manufacturing firms included in the Research Insight/Global Vintage database at the end of 2015. Our findings may provide valuable insights for financial managers and global investors. We find that Asian firms tend to have less liquidity risk but more bankruptcy risk compared with European firms. European firms have more efficient accounts receivable management and higher fixed and total assets turnover rates. However, Asian firms have higher inventory turnover and sales growth rates. Return on equity is not significantly different in European and Asian firms. However, Asian firms have significantly higher net profit margin and return on assets compared with European firms. |
topic |
financial ratios european and asian manufacturing firms manova (multivariate analysis of variance) |
url |
https://doi.org/10.1515/sbe-2017-0040 |
work_keys_str_mv |
AT mericgulser acomparisonofthefinancialcharacteristicsofeuropeanandasianmanufacturingfirms AT welshcarol acomparisonofthefinancialcharacteristicsofeuropeanandasianmanufacturingfirms AT scarparobert acomparisonofthefinancialcharacteristicsofeuropeanandasianmanufacturingfirms AT mericilhan acomparisonofthefinancialcharacteristicsofeuropeanandasianmanufacturingfirms AT mericgulser comparisonofthefinancialcharacteristicsofeuropeanandasianmanufacturingfirms AT welshcarol comparisonofthefinancialcharacteristicsofeuropeanandasianmanufacturingfirms AT scarparobert comparisonofthefinancialcharacteristicsofeuropeanandasianmanufacturingfirms AT mericilhan comparisonofthefinancialcharacteristicsofeuropeanandasianmanufacturingfirms |
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