The correlations between 2003–2004 average
capital intensity and 2010–2011 average capital
intensity both when examined in aggregate and
by industry are all positive and signifi cant. This
indicates that sample companies which have higher
(or lower) capital intensity continue to have higher
(or lower) capital intensity. However, the result
of paired t-test shows that the 2-year average
proportion of fi xed manufacturing costs to total
manufacturing costs of the total sample at the
beginning of the period studied is not signifi cantly
different from that at the end of period studied
at the fi ve percent level of confi dence. When
examining the 2-year average proportion of fi xed
manufacturing costs to total manufacturing costs
of each of the three industries, only Industrials
exhibits a signifi cant decrease in capital intensity.
As indicated earlier, this may be attributable to
the fact that the nine-year period is too short
to observe signifi cant changes in manufacturing
technology that causes manufacturing overhead
costs to increase and that sample companies may
have implemented new manufacturing technology
before the year 2003 which is the beginning of
the period studied