Discrepancies in Financial Performance between Domestic and Foreign Owned Enterprises: The case of Greece

Dionisis Valsamis, Marina-Selini Katsaiti, Panagiotis Petrakis


This study examines whether there are differences between domestic and foreign owned firms operating in Greece, and in particular it focuses on financial management characteristics of the firms under investigation. The data come from the individual companies’ balance sheets for the year 2008. The firms under investigation are grouped into two categories based on the origin of their capital share. Using a non-linear model, we arrive at the following results: foreign enterprises have higher use of capital, manage more financial elements, have more access to long-tern borrowing, while they fall short against domestic firms in short term financing. Finally, foreign firms have higher sales and present greater profitability.

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DOI: http://dx.doi.org/10.5539/ijef.v3n5p76

International Journal of Economics and Finance  ISSN  1916-971X (Print) ISSN  1916-9728 (Online)

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