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A Comparison Of The Financial Characteristics Of European And Asian Manufacturing Firms

Author

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  • MERIC Gulser

    (Rohrer College of Business, Rowan University, Glassboro, New Jersey, USA)

  • WELSH Carol

    (Rohrer College of Business, Rowan University, Glassboro, New Jersey, USA)

  • SCARPA Robert

    (Rohrer College of Business, Rowan University, Glassboro, New Jersey, USA)

  • MERIC Ilhan

    (Rohrer College of Business, Rowan University, Glassboro, New Jersey, USA)

Abstract

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.

Suggested Citation

  • MERIC Gulser & WELSH Carol & SCARPA Robert & MERIC Ilhan, 2017. "A Comparison Of The Financial Characteristics Of European And Asian Manufacturing Firms," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 12(3), pages 112-125, December.
    • Handle: RePEc:blg:journl:v:12:y:2017:i:3:p:112-125
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    References listed on IDEAS

    as
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