Faculty Scholarship 1994 - Present

Integration and Fin Characteristics of Firms: A Study of French, German, and U.K. Manufacturing Firms

Integration is a popular research topics in finance literature. A number of studies have investigated various aspects of integration [see, e.g., Beckers et al. (1992), Armstrong et al. (1996), and Alford and Falks (1996)]. However, the effects of integration on the financial characteristics of firms have not been studied. In this study, we test the hypothesis that firms in countries with integrated economies tend to have similar financial characteristics by using a sample of French, German, and U.K. manufacturing firms. Our findings indicate that, although France, Germany, and the U.K. are members of the European Union (EU) and they have integrated economies, the financial characteristics of manufacturing firms in these countries are significantly different.