3. Hypotheses Testing Results
3.1 Capital Intensity
In order to determine whether there is any significant change in capital intensity over the period studied and reduce the impact of one-year anomalies, average proportion of fixed manufacturing costs to total manufacturing costs was calculated for the 2-year period at the beginning of the period studied (2003 and 2004) and at the end of the period studied (2010 and 2011). A paired t-test was conducted to test whether the 2-year average proportion of fixed manufacturing costs to total manufacturing costs at the beginning of the period studied is significantly different from that at the end of the period studied when examined in aggregate and by industry. Table 7 shows the correlations and
paired-sample t-test results of 2-year average proportion of fixed manufacturing costs to total manufacturing costs of the total sample and each of the three industries at the beginning and at the end of the period studied