|CV: Curriculum Vitae from Carlos Serrano Cinca, professor in Accounting and Finance at the University of Zaragoza (Spain)|
Serrano Cinca, C.; Mar Molinero, C. and Gallizo, J.L. (2005): "Country and Size Effects in Financial Ratios: A European Perspective", Global Finance Journal, Ed Elsevier Science, vol 16, pp 26-47
Harmonised aggregate financial statements are published by the European Commission in the BACH database. This information is organised by country, size of firm, and year. Financial ratios obtained from this database are analysed using multivariate statistical techniques in order to explore country and size effects. The data relates to three size groups, eleven countries, fourteen years, and fifteen financial and economic ratios. It is found that ratios reflect the size of the firm, but that the way in which this is reflected varies between the different countries. It is also found that there are no significant size related differences in financial profitability, but that such differences appear when countries are compared.
Keywords: BACH database; Firm size; Financial ratios; Central balance sheet; Three-way scaling; INDSCAL; Financial statement analysis