Question
From each of 10 industries , Michel and Shaked selected a sample of 13 American firms and 13 Japanese firms. The average book value-based capitalization
From each of 10 industries , Michel and Shaked selected a sample of 13 American firms and 13 Japanese firms. The average book value-based capitalization ratio that were computed for each of the 10 industries, for 1981, are shown in Table A. Table B presents similar information, using market value-based capitalization ratios. What would you conclude from a comparison of these ratios? Conduct a test to determine if Japanese firms are more highly leveraged than American firms based on book-value-based capitalization ratios. Use = .05. Conduct a test to determine if Japanese firms are more highly leveraged than American firms based on market-value-based capitalization ratios.
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