Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/175531
Authors: 
Carlino, Laurent
Coppens, François
González, Javier
Ortega, Manuel
Pérez-Duarte, Sébastien
Rubbrecht, Ilse
Vennix, Saskia
Year of Publication: 
2017
Series/Report no.: 
ECB Statistics Paper 21
Abstract: 
Analysis of consolidated accounting data of European listed groups shows significant differences in some key ratios between countries. However, the figures do not reveal whether these differences result from a distinct composition of the countries' populations in terms of branches of activity (structural effect) or from intrinsic disparities in the behaviour of groups from various countries. This paper will address this issue using ratio decomposition techniques. A comparative overview of decomposition methodologies available in the literature will be provided, as well as an in-depth description of the methodology used. This will be applied to decompose the difference in the financial debt ratio, the equity ratio and the EBIT margin across countries for one specific year and to consider any dissimilarities in financial debt ratios over a limited period of time. The study will be based on the data available in the ERICA dataset from the European Committee of Central Balance Sheet Data Offices (ECCBSO), which includes accounting data of listed groups from Austria, Belgium, France, Germany, Greece, Italy, Portugal and Spain. The aggregate ratios of each country will be compared against a benchmark composed of the aggregate ratios for the eight countries together.
Subjects: 
decomposition analysis
decomposition techniques
financial ratios
JEL: 
C43
L22
L25
M4
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-2835-9
Document Type: 
Working Paper
Social Media Mentions:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.