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Original Articles

Using financial ratios to differentiate domestic and multinational corporations

Pages 1071-1074 | Published online: 11 Sep 2007
 

Abstract

The objective of this empirical study is to determine if multinational corporations have statistically different financial characteristics that can be used to differentiate the multinational corporations from domestic corporations. We find that multinational corporations have higher levels for net profit margin, total asset turnover and leverage. However, the retention rates for the two groups are not statistically significantly different.

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