IDEAS home Printed from https://ideas.repec.org/a/ibf/gjbres/v8y2014i3p31-37.html
   My bibliography  Save this article

A Comparison Of The Financial Characteristics Of Hong Kong And Singapore Manufacturing Firms

Author

Listed:
  • Ilhan Meric
  • Christine Lentz
  • Sherry F. Li
  • Gulser Meric

Abstract

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.

Suggested Citation

  • Ilhan Meric & Christine Lentz & Sherry F. Li & Gulser Meric, 2014. "A Comparison Of The Financial Characteristics Of Hong Kong And Singapore Manufacturing Firms," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 8(3), pages 31-37.
    • Handle: RePEc:ibf:gjbres:v:8:y:2014:i:3:p:31-37
    as

    Download full text from publisher

    File URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v8n3-2014/GJBR-V8N3-2014-4.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Deakin, Eb, 1972. "Discriminant Analysis Of Predictors Of Business Failure," Journal of Accounting Research, Wiley Blackwell, vol. 10(1), pages 167-179.
    2. Edmister, Robert O., 1972. "An Empirical Test of Financial Ratio Analysis for Small Business Failure Prediction," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 7(2), pages 1477-1493, March.
    3. Edward I. Altman, 1968. "Financial Ratios, Discriminant Analysis And The Prediction Of Corporate Bankruptcy," Journal of Finance, American Finance Association, vol. 23(4), pages 589-609, September.
    4. Edward I. Altman, 1968. "The Prediction Of Corporate Bankruptcy: A Discriminant Analysis," Journal of Finance, American Finance Association, vol. 23(1), pages 193-194, March.
    5. Dambolena, Ismael G & Khoury, Sarkis J, 1980. "Ratio Stability and Corporate Failure," Journal of Finance, American Finance Association, vol. 35(4), pages 1017-1026, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Foo See Liang & Shaak Pathak, 2019. "Understanding the Connection of Performance and Z-Scores for Manufacturing Firms in South Korea," Journal of Asian Development, Macrothink Institute, vol. 5(3), pages 37-46, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Balcaen, Sofie & Ooghe, Hubert, 2006. "35 years of studies on business failure: an overview of the classic statistical methodologies and their related problems," The British Accounting Review, Elsevier, vol. 38(1), pages 63-93.
    2. fernández, María t. Tascón & gutiérrez, Francisco J. Castaño, 2012. "Variables y Modelos Para La Identificación y Predicción Del Fracaso Empresarial: Revisión de La Investigación Empírica Reciente," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 15(1), pages 7-58.
    3. Dimitras, A. I. & Zanakis, S. H. & Zopounidis, C., 1996. "A survey of business failures with an emphasis on prediction methods and industrial applications," European Journal of Operational Research, Elsevier, vol. 90(3), pages 487-513, May.
    4. MERIC Gulser & BENTLEY T. Jerome & McCALL W.Charles & MERIC Ilhan, 2016. "A Comparison Of The Financial Characteristics Of U.S. And European Manufacturing Firms," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 11(2), pages 58-67, August.
    5. Şaban Çelik, 2013. "Micro Credit Risk Metrics: A Comprehensive Review," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 20(4), pages 233-272, October.
    6. Francesco Ciampi & Valentina Cillo & Fabio Fiano, 2020. "Combining Kohonen maps and prior payment behavior for small enterprise default prediction," Small Business Economics, Springer, vol. 54(4), pages 1007-1039, April.
    7. Gulser MERIC & Stephanie WEIDMAN & Carol WELSH & Ilhan MERIC, 2017. "A Comparison of the Financial Management Characteristics of UK vs. EU Manufacturing Firms," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 18(2), pages 138-147, May.
    8. Zhou, Fanyin & Fu, Lijun & Li, Zhiyong & Xu, Jiawei, 2022. "The recurrence of financial distress: A survival analysis," International Journal of Forecasting, Elsevier, vol. 38(3), pages 1100-1115.
    9. Lin, Hsiou-Wei William & Lo, Huai-Chun & Wu, Ruei-Shian, 2016. "Modeling default prediction with earnings management," Pacific-Basin Finance Journal, Elsevier, vol. 40(PB), pages 306-322.
    10. Chen, An-Sing & Chu, Hsiang-Hui & Hung, Pi-Hsia & Cheng, Miao-Sih, 2020. "Financial risk and acquirers' stockholder wealth in mergers and acquisitions," The North American Journal of Economics and Finance, Elsevier, vol. 54(C).
    11. du Jardin, Philippe & Séverin, Eric, 2011. "Predicting corporate bankruptcy using a self-organizing map: An empirical study to improve the forecasting horizon of a financial failure model," MPRA Paper 44262, University Library of Munich, Germany.
    12. Tarek Ibrahim Eldomiaty & Mohamed Hashem Rashwan & Mohamed Bahaa El Din & Waleed Tayel, 2016. "Firm, industry and economic determinants of working capital at risk," International Journal of Financial Engineering (IJFE), World Scientific Publishing Co. Pte. Ltd., vol. 3(04), pages 1-29, December.
    13. Ha-Thu Nguyen, 2015. "How is credit scoring used to predict default in China?," EconomiX Working Papers 2015-1, University of Paris Nanterre, EconomiX.
    14. Laitinen, Erkki K., 2007. "Classification accuracy and correlation: LDA in failure prediction," European Journal of Operational Research, Elsevier, vol. 183(1), pages 210-225, November.
    15. García-Gallego, Ana & Mures-Quintana, María-Jesús, 2013. "La muestra de empresas en los modelos de predicción del fracaso: influencia en los resultados de clasificación || The Sample of Firms in Business Failure Prediction Models: Influence on Classification," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 15(1), pages 133-150, June.
    16. du Jardin, Philippe, 2015. "Bankruptcy prediction using terminal failure processes," European Journal of Operational Research, Elsevier, vol. 242(1), pages 286-303.
    17. Ha-Thu Nguyen, 2014. "Default Predictors in Credit Scoring - Evidence from France’s Retail Banking Institution," EconomiX Working Papers 2014-26, University of Paris Nanterre, EconomiX.
    18. Ali DERAN & Omer ISKENDEROGLU & Incilay ERDURU, 2014. "Regional Differences and Financial Ratios: A Comparative Approach on Companies of ISE City Indexes," International Journal of Economics and Financial Issues, Econjournals, vol. 4(4), pages 946-955.
    19. Philosophov, Leonid V. & Philosophov, Vladimir L., 2002. "Corporate bankruptcy prognosis: An attempt at a combined prediction of the bankruptcy event and time interval of its occurrence," International Review of Financial Analysis, Elsevier, vol. 11(3), pages 375-406.
    20. Gemünden, Hans Georg, 1988. "Defekte der empirischen Insolvenzforschung," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 205, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.

    More about this item

    Keywords

    Financial Characteristics; Manufacturing Firms; Hong Kong; Singapore; MANOVA; Multivariate Analysis of Variance;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibf:gjbres:v:8:y:2014:i:3:p:31-37. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mercedes Jalbert (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.