Determinants of contractors' capital investment finance strategy in Ghana

Purpose – The purpose of this paper is to report on the results of a survey conducted in Ghana and advances knowledge on determinants of contractors' capital investment financing strategy. Design/methodology/approach The empirical investigation was conducted using survey questionnaire. The dataset was obtained from 54 large construction firms operating in Ghana. The consideration of overlapping aspects of the study largely motivated the use of factor analysis to analyse the data which made it possible to make scientific deductions, descriptions and built explanations from the results. Findings The study provides fresh contribution to knowledge and fills the empirical research gap by deriving six new brands of uncorrelated variables that better explain contractors' investment financing decisions. These variables were manifested in the financial condition, macroeconomic indicators, bankruptcy cost, financial risk, transaction cost and financial policy. The paper recommends future research to explore the relationship between these explanatory variables and dependent variables, thus, equity and debt using regression models. Originality/value The original contribution and value of the paper is the orientation of the paper between conceptual and empirical traditions and the contextual provision of realities contained in the financial underpinnings examined and presentation of operations directions about the ways construction executives can create action plans to improve their financial decisions through a deeper understanding and application of the financial variables.