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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Main Authors: Meric Gulser, Welsh Carol, Scarpa Robert, Meric Ilhan
Format: Article
Language:English
Published: Sciendo 2017-12-01
Series:Studies in Business and Economics
Subjects:
Online Access:https://doi.org/10.1515/sbe-2017-0040
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spelling 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
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