Euro-Mediterranean Corporate Financial Structures: Can the corporate financial structure create value to the corporation?

ISBN-13: 9781517161866 / Angielski / Miękka / 2015 / 174 str.

Joseph J. Sherman Mba

Opis

The work begins with an extensive literature review of capital structure theory, financial harmonization, and contemporary studies relating to value creation. This study took data from The European Committee of Central Balance Sheet Data Offices harmonized accounting data from manufacturing firms in Italy, Spain, Portugal, Japan, and the United States. Fifteen financial indicators from the balance sheet: nine from assets, five from liabilities, and three indicators from the profit and loss account were extracted from the database. This study finds that corporate financial structures alone do not create value for the firm. Rather, the structure reflects the corporation's attempt to adapt to the current economic climate. The data suggests that there is no ideal financial structure for Euro-Mediterranean companies. Companies in each country must adapt to unique macro and micro-economic situations. This leads to similar companies taking on very different financial structures that may lead to similar or different returns.