A COMPARISON OF THE FINANCIAL CHARACTERISTICS OF HONG KONG AND SINGAPORE MANUFACTURING FIRMS

In this paper, we compare the financial characteristics of Hong Kong and Singapore manufacturing firms with the MANOVA (Multivariate Analysis of Variance) technique. Our findings indicate that the liquidity, accounts receivable turnover, inventory turnover, total assets turnover, and equity ratios of manufacturing firms in Hong Kong and Singapore are not significantly different. However, the profitability ratios and annual sales growth rates of Hong Kong manufacturing firms are significantly higher than those of Singapore manufacturing firms. Manufacturing firms in Hong Kong also appear to have higher fixed assets turnover rates compared with their counterparts in Singapore. Our findings in this study provide valuable insights for financial managers and for investors who invest in Hong Kong and Singapore.