Tang, C M; Wong, C W Y; Leung, A Y T and Lam, K C (2005) A GA-based borrowing strategy for construction smes in Hong Kong. In: Khosrowshahi, F (ed.) Proceedings of 21st Annual ARCOM Conference, 7-9 September 2005, London, UK.
Abstract
Small and Medium Enterprise (SME) contributes 98% of the economy in Hong Kong. However, the semi-structured nature of finance optimization problems is still unsolved in financial decisions, especially in the construction industry. The research presented in this paper illustrates an adaptive genetic algorithm (AGA) approach to the selection of funding schemes by a modified construction loan acquisition model that was developed by Lam et al. (1998). Multiple projects being undertaken by a medium-size construction firm in Hong Kong were used as a real case study to demonstrate the application of AGA to the borrowing decision problems. A monthly borrowing strategy was finally achieved. SME Loan Guarantee Scheme (SGS) that was launched by the HKSAR was first identified as the source of external financing. Selection of sources of funding can be made such that a more accurate, objective and reliable borrowing decision can be provided for the decision- maker to analyze the financial options.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | construction firm; genetic algorithm; loan and finance; optimization |
| Index terms: | funding, financing, option, construction industry, guarantee, genetic algorithm, case study, Hong Kong, acquisition, construction firm, strategy |
| Subjects: | economic analysis, data collection methods, business, organization, industry analysis, decision analysis, Geography, management, contract structure, algorithms |
| Topics: | Procurement, Risk Management, Research Practice, Geographical Context, Business Strategy, Digital Applications |
| Descriptive scope: | 4 PCTE |
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