Dinca, M S; Barbuta-Misu, N; Madaleno, M; Dinca, G and Deari, F (2017) Integrated analysis of EU construction companies' financial performances. Journal of Construction Engineering and Management, 143(6): 04017002, ISSN 0733-9364
Abstract
An integrated (statistical, econometric, and economic) analysis is conducted of two relevant financial performance measures - return on assets (ROA) and return on equity (ROE) - for 958 construction companies from eight EU countries between 2004 and 2013. The methodology can be readily applied to any country, region, or even the entire global construction sector. Findings indicate that companies from Western EU countries have higher ROE compared to companies from Eastern EU countries, but the latter offered higher ROA. Inverse of short-term debt has a high explanatory capacity in the long run. Investment productivity and labor productivity are also instrumental in explaining the variance of inverse of long-term debt. These findings indicate that companies should increase their productive investments when faced with a crisis. The majority of findings are consistent with recent research. The results are important for academics, investors, and managers because knowledge about variables, factors, and mutual influences allows better forecasts and better short-term and medium-term actions and strategies.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | gmm; impulse responses function; integrated economic analysis; return on assets; return on equity; vector autoregression |
| Index terms: | labour productivity, global construction, econometric, return on assets, investor, variance, productivity, financial performance, methodology, economic analysis, manager, construction company, strategy |
| Subjects: | organization, strategic management, practitioner, design analysis, economic analysis, research methods, business analysis, management, sociology, measurement and scaling |
| Topics: | International Construction, Design Practice, Site Management, Research Practice, Business Strategy, Roles and Professions, Stakeholder Management |
| Descriptive scope: | 4 PCTA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here