A Financial Comparison between Taiwanese and US Firms: Evidence of Differential Financial Strategies

Abstract

With the growing interest in the globalisation of the economy, it is useful to undertake comparative studies of strategies pursued by business firms in the developed and developing countries. This paper is an attempt in this direction. It examines cross-balance sheet relationships for a sample of small- to mediumsized Taiwanese firms and compares the results with similar studies of small and large companies in the United States. The similarities and contrasts pointed out in the paper may provide insights into how firms adopt their financial strategies in different economies and under different market constraints.