Faculty Scholarship 1994 - Present

MANOVA Tests of the Changes in the Financial Characteristics of EU Manufacturing Firms

In this paper, we study the changes in the financial characteristics of French, German and UK manufacturing firms by using the MANOVA (Multivariate Analysis of Variance) technique with data for the December 31, 1990-December 31, 2004 period. Our test results indicate that the financial characteristics of EU manufacturing firms have changed significantly over time. There are no significant changes in the liquidity and financial leverage ratios of the firms. However, the asset returns, equity returns, sales growth rates and employee growth rates have decreased significantly due to increased integration and competition.