Faculty Scholarship 1994 - Present

The Effects of Economic Integration on the Financial Characteristics ofo EU Manufacturing Firms

In this paper, we study the effects of EU economic integration on the financial characteristics of French, German, and U.K. manufacturing firms by using the MANOVA (Multivariate Analysis of Variance) technique. Our cross-sectional test results for the December 31, 1990-December 31, 1994 and December 31, 2000-December 31, 2004 periods indicate that the differences between the financial characteristics of manufacturing firms in different EU member countries are decreasing. The asset and equity returns of manufacturing firms in different member countries are becoming similar due to economic integration and increased competition over time.