Faculty Scholarship 1994 - Present

A Comparative Study of Corporate Financial and Nonfinancial Performance of US and Japanese Firms

The objectives of this paper are to compare Liquidity, Solvency, and Profitability and Market performance of US and Japanese companies and to examine differences in financial characteristics of High-tech, Low-tech, and Service Industries. Overall, US firms show a higher liquidity and profitability ratios, while Japanese firms exhibit significantly higher PE ratio, debt ratio, and efficiency ratios (Account receivable, Inventory and Asset turnover). Similar trends hold for high-tech, low-tech, and service industries.