Finance and accounting research proposal
La Porta et al (1998 ) study clearly reveals that external capital is more significant in US , UK and in the Netherlands . All countries firm aim at maximizing their profits , retain the market position and maintain sustainable growth and lower priorities were given to dividend and leverage . British and Dutch firms view that maximizing the shareholders wealth is the top priority for them and whereas German and France view that optimizing their leverage is important to them than shareholders wealth . Since this study sample includes high percentage of private firms in the German
and French samples (88 and 77 respectively ) this rate of private of firms may elucidate the lower scores on shareholder wealth maximization in these countries . Thus the German and French firms consider general public to be more significant to them than their shareholders
This study finds out lower average values for the price-earnings ratios in our European sample . In Graham and Harvey (2001 ) survey , about 40 of the US firms reported a price-earnings ratio below 15 whereas it is slightly higher in European firms i , e , 67 in Germany and 56 in France . In general this comparison is to be treated with caution as there is time difference between both surveys
SATISTICS OF FIRMS
In Graham and Harvey (2001 ) survey , about 51 of firms in their US sample have sales exceeding US 500 million where as in our European sample , it is less than 25 and the firms which exceeds US 1 billion has been termed as `large firms ` in our sample . As regards to export sales , as far as European firms are concerned it constitutes about 40 of its .Both in our study and in Graham and Harvey (2001 , manufacturing as industry type .is the majority of the firms of the sample that are engaged . But as...