A Comparison of the Financial Characteristics of NAFTA and Latin American Manufacturing Firms
| Autor: | J. Drew Procaccino, Cengiz Haksever, Ilhan Meric, Gulser Meric |
|---|---|
| Rok vydání: | 2017 |
| Předmět: |
Finance
lcsh:Management. Industrial management Latin Americans business.industry Financial risk Equity (finance) Financial ratio lcsh:Business Liquidity risk Financial ratios Multivariate analysis of variance lcsh:HD28-70 MANOVA (Multivariate Analysis of Variance) Manufacturing firms Latin American manufacturing firms Business lcsh:HF5001-6182 NAFTA manufacturing firms Accounts receivable General Environmental Science |
| Zdroj: | Emerging Markets Journal, Vol 6, Iss 2, Pp 22-29 (2017) |
| ISSN: | 2158-8708 |
| DOI: | 10.5195/emaj.2016.102 |
| Popis: | Comparing the financial characteristics of firms in different countries and different regions has been a popular research topic in finance. However, NAFTA and Latin American manufacturing firms have never been compared. In this paper, we undertake such a study with the MANOVA (Multivariate Analysis of Variance) method and with data drawn from the Research Insight/Global Vintage database in October 2015. Our findings indicate that NAFTA manufacturing firms have less liquidity risk, but more financial risk, compared with Latin American Manufacturing firms. NAFTA manufacturing firms have significantly higher returns on equity due to achieving higher returns on assets and using more financial leverage. Latin American manufacturing firms have more efficient inventory management. However, NAFTA manufacturing firms have more efficient accounts receivable management and total assets management. |
| Databáze: | OpenAIRE |
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