Faculty Scholarship 1994 - Present

Comp of Fin Characteristics of U.S. and Japanese Machinery and Equipment Manufacturing Firms

The growing U.S. trade deficit with Japan and the deteriorating competitiveness of many U.S. industries vis-a-vis their Japanese counterparts have provided motivation for a number of comparative studies of U. S. and Japanese firms in recent years. This study compares the financial characteristics of U.S. and Japanese machinery and equipment manufacturing firms by using the MANOVA (multivariate analysis of variance) method. The findings in the study indicate that the overall financial characteristics of U.S. and Japanese machinery and equipment manufacturing firms are significantly different. Total assets turnover, return on assets, fixed charge coverage, and the current ratio are significantly higher in U.S. firms than in Japanese firms. However, Japanese firms have significantly higher financial leverage and inventory turnover levels compared with U.S. firms.