Differences in Financial Characteristics between Small and Large Firms: An Empirical Examination of the Casino Industry
Type of Submission
This study examines the differences in financial characteristics between small and large firms in the rapidly expanding casino industry. Financial ratios from 50 casino firms from the fiscal year 1995 are examined to determine the differences between small and large firms. Firms are classified into small and large groups based on the median value of total asset size for sample firms. Wilcox Rank Sum Test, a non-parametric test, is used to test for differences in the financial characteristics of small and large firms. The main results are that smaller firms have higher liquidity and short-term debt ratios. Larger firms have a higher proportion of long term and total debt. Larger firms do not appear to enjoy economies of scale, as they have lower efficiency ratios. However, larger firms also are more profitable.
Upneja, Arun; Kim, Hyunjoon; and Singh, Amrik
"Differences in Financial Characteristics between Small and Large Firms: An Empirical Examination of the Casino Industry,"
Journal of Hospitality Financial Management: Vol. 8:
1, Article 8.
Available at: https://scholarworks.umass.edu/jhfm/vol8/iss1/8