On the financial characteristics of firms that initiated new dividends during a period of economic recession and financial market turmoil

Dividend Initation, Recession, Financial Market Turmoil, G 14, 32, 35,

A squared rank assessment of the difference between US and European firm valuation ratios

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 (MANOVA) and multiple discriminant analysis (MDA). 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 assumption because it is a descriptive method. 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

Resiliency of the Coastal Recreational For-Hire Fishing Industry to Natural Disasters

© 2013, Coastal and Estuarine Research Federation. The financial condition of US Gulf of Mexico recreational-for-hire (RFH) fishing firms post-hurricane damage was examined within the context of the industry’s contribution to the resiliency of coastal socio-ecological systems (SES). Three key financial ratios—return-on-assets, assets turnover ratio, and debt-to-assets ratio—were calculated for 2009 from balance sheets and cash flow statements constructed from surveys of 247 RFH firms operating in the five Gulf states. The ratios were then recalculated using reported damage and operational losses from at least one named storm in the 2004–2008 period and combined with the results of a logistic regression model of profitability loss to assess the resiliency of the RFH industry. Results suggest that RFH firm resiliency was a function of operating class (head, charter, and guide boats), homeport, and the way in which the business was structured. Firms appeared to be the most resilient when they employed smaller vessels in intensively managed operations, perhaps due to their ability to move a vessel out of the path of storms and because their profitability and efficiency advantages allowed for self-insurance against losses. As a result, community contributions to, and benefits from, resiliency in the RFH industry may hinge on the development of more modern port facilities and well-functioning insurance markets