Corporate Performance and Economic Convergence between Europe and the US: A Cluster Analysis Along Industry Lines

We investigate the extent to which the United States and the countries of Europe have achieved economic convergence of their corporate sector. We define convergence as the homogenization of economic performance, institutional arrangements, and market valuation taking place at the meso-economic level...

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Main Authors:	Călin Vâlsan, Elena Druică
Format:	Article
Language:	English
Published:	MDPI AG 2020-03-01
Series:	Mathematics
Subjects:	convergence corporate performance clustering analysis
Online Access:	https://www.mdpi.com/2227-7390/8/3/451

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spelling	doaj-bac332b1285945e3a163571519a1a6652020-11-25T03:10:15ZengMDPI AGMathematics2227-73902020-03-018345110.3390/math8030451math8030451Corporate Performance and Economic Convergence between Europe and the US: A Cluster Analysis Along Industry LinesCălin Vâlsan0Elena Druică1Williams School of Business, Bishop’s University, Sherbrooke, QC J1M1Z7, CanadaFaculty of Business and Administration, University of Bucharest, 030018 Bucharest, RomaniaWe investigate the extent to which the United States and the countries of Europe have achieved economic convergence of their corporate sector. We define convergence as the homogenization of economic performance, institutional arrangements, and market valuation taking place at the meso-economic level. We perform a cluster analysis along industry lines and find that industries and corporations on both continents cluster in four groups, based on six variables measuring operating performance, ownership, and market valuation. The clusters resulted from the US data are more unstable than those resulted from European data. We are also able to pair a handful of highly similar clusters between the US and European data. These findings suggest a complex dynamic. It seems that the US corporate sector is more homogeneous than the European one. Moreover, some degree of convergence between the European Union and the United States appears to have already occurred.https://www.mdpi.com/2227-7390/8/3/451convergencecorporate performanceclustering analysis
collection	DOAJ
language	English
format	Article
sources	DOAJ
author	Călin Vâlsan Elena Druică
spellingShingle	Călin Vâlsan Elena Druică Corporate Performance and Economic Convergence between Europe and the US: A Cluster Analysis Along Industry Lines Mathematics convergence corporate performance clustering analysis
author_facet	Călin Vâlsan Elena Druică
author_sort	Călin Vâlsan
title	Corporate Performance and Economic Convergence between Europe and the US: A Cluster Analysis Along Industry Lines
title_short	Corporate Performance and Economic Convergence between Europe and the US: A Cluster Analysis Along Industry Lines
title_full	Corporate Performance and Economic Convergence between Europe and the US: A Cluster Analysis Along Industry Lines
title_fullStr	Corporate Performance and Economic Convergence between Europe and the US: A Cluster Analysis Along Industry Lines
title_full_unstemmed	Corporate Performance and Economic Convergence between Europe and the US: A Cluster Analysis Along Industry Lines
title_sort	corporate performance and economic convergence between europe and the us: a cluster analysis along industry lines
publisher	MDPI AG
series	Mathematics
issn	2227-7390
publishDate	2020-03-01
description	We investigate the extent to which the United States and the countries of Europe have achieved economic convergence of their corporate sector. We define convergence as the homogenization of economic performance, institutional arrangements, and market valuation taking place at the meso-economic level. We perform a cluster analysis along industry lines and find that industries and corporations on both continents cluster in four groups, based on six variables measuring operating performance, ownership, and market valuation. The clusters resulted from the US data are more unstable than those resulted from European data. We are also able to pair a handful of highly similar clusters between the US and European data. These findings suggest a complex dynamic. It seems that the US corporate sector is more homogeneous than the European one. Moreover, some degree of convergence between the European Union and the United States appears to have already occurred.
topic	convergence corporate performance clustering analysis
url	https://www.mdpi.com/2227-7390/8/3/451
work_keys_str_mv	AT calinvalsan corporateperformanceandeconomicconvergencebetweeneuropeandtheusaclusteranalysisalongindustrylines AT elenadruica corporateperformanceandeconomicconvergencebetweeneuropeandtheusaclusteranalysisalongindustrylines
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Corporate Performance and Economic Convergence between Europe and the US: A Cluster Analysis Along Industry Lines

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