Faculty Scholarship 1994 - Present

A Comparative Study of the U.S. and Japanese Firms in the Chemicals Industry

Our growing trade deficit with Japan and the deteriorating competitiveness of many of our 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 the U.S. and Japanese firms in the chemicals industry by using the MANOVA method. Our findings indicate that the financial characteristics of U.S. and Japanese chemicals firms are significantly different. Profitability, liquidity, total-assets turnover, and fixed-charge coverage in U.S. chemical firms are significantly higher than in Japanese chemical firms. However, Japanese chemical firms appear to have significantly higher financial leverage and inventory turnover compared with U.S. chemical firms.