Chan, J K W; Tam, C M and Cheung, R (2005) Monitoring financial health of contractors at the aftermath of the Asian economic turmoil: A case study in Hong Kong. Construction Management and Economics, 23(5), pp. 451-458. ISSN 01446193
Abstract
The whole construction industry (contractors, consultants and suppliers) is suffering from business shrinking under the prevailing deflationary economy in Hong Kong. Local contractors are facing tremendous financial problems. The financial situation of a typical local contractor has been analysed for the years since 1997 - the Asian Economic Crisis. By using the financial ratios together with one of Altman's distress models, it is possible to monitor and assess the financial health of contractors. Based on the results of the case study, the financial health of the contractor under study is found satisfactory. In addition to this quantitative analysis, it is advisable for local contractors to conduct a strategic review for their construction industry and their business environment so as to improve their financial performance in both the near future and longer term.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | case study; contractors; financial health; Hong Kong; monitoring |
| Index terms: | financial performance, financial ratio, quantitative analysis, local contractor, monitoring, construction industry, distress, Hong Kong, case study |
| Subjects: | data analysis and analytics, economic analysis, practitioner, control systems, data collection methods, industry analysis, Geography, structural engineering, business analysis |
| Topics: | Site Management, Roles and Professions, Business Strategy, Research Practice, Geographical Context, Engineering Principles |
| 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