<abstract xmlns="http://www.w3.org/1999/xhtml"><p>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.</p></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.

A Comparison of the Financial Characteristics of U.S. and European Manufacturing Firms

Rider University, Lawrenceville, New Jersey,

Studies in Business and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

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...

A Comparison of the Financial Characteristics of U.S. and European Manufacturing Firms

Published Online: Nov 19, 2016

Page range: 58 - 67

DOI: https://doi.org/10.1515/sbe-2016-0021

Keywords
Financial Characteristics, U.S. manufacturing firms, European manufacturing firms, MANOVA (Multivariate Analysis of Variance)

© 2016 Meric Gulser et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

A Comparison of the Financial Characteristics of U.S. and European Manufacturing Firms

Published Online: Nov 19, 2016

Page range: 58 - 67

DOI: https://doi.org/10.1515/sbe-2016-0021

KeywordsFinancial Characteristics, U.S. manufacturing firms, European manufacturing firms, MANOVA (Multivariate Analysis of Variance)

© 2016 Meric Gulser et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Financial Characteristics, U.S. manufacturing firms, European manufacturing firms, MANOVA (Multivariate Analysis of Variance)