IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-319-02499-8_19.html
   My bibliography  Save this book chapter

A Squared Rank Assessment of the Difference Between US and European Firm Valuation Ratios

In: Mathematical and Statistical Methods for Actuarial Sciences and Finance

Author

Listed:
  • Marco Marozzi

    (University of Calabria, Department of Economics, Statistics and Finance)

Abstract

Financial ratios are useful in determining the financial strengths and weaknesses of firms. The most commonly used methods for comparing firms through financial ratios are multivariate analysis of variance and multiple discriminant analysis. These methods have been very often used for inferential purposes when the underlying assumptions (e.g. random sampling, normality, homogeneity of variances … ) are not met. A method for comparing firm financial ratios is proposed, it is based on squared ranks and does not require any particular assumptions. The proposed method is devised to explicitly consider the possible difference in variances and to take also into account the dependence among the financial ratios. It is robust against skewness and heavy tailness. This aspect is very important because usually financial ratios, even after removing outliers, are highly skewed and heavy tailed. An application for studying the difference between US and European firms is discussed.

Suggested Citation

  • Marco Marozzi, 2014. "A Squared Rank Assessment of the Difference Between US and European Firm Valuation Ratios," Springer Books, in: Marco Corazza & Claudio Pizzi (ed.), Mathematical and Statistical Methods for Actuarial Sciences and Finance, pages 205-217, Springer.
    • Handle: RePEc:spr:sprchp:978-3-319-02499-8_19
    DOI: 10.1007/978-3-319-02499-8_19
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-3-319-02499-8_19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.