外文原文
Performance Evaluating Model for Construction Companies: Egyptian Case Study
Abstract
The dynamic nature of todayrsquo;s construction industry compels construction partners to seek strategies in order to improve performance. Current research introduces a performance evaluation model for construction companies in order to provide a proper tool for a companyrsquo;s managers, owners, shareholders, and funding agencies to evaluate the performance of construction companies. The model developed helps a companyrsquo;s management to make the right decisions. Financial, economical, and industrial data are collected from Egyptian construction companies for nine consecutive years 1992–2000. Five indices models are developed: company performance score, economy performance score, industry performance score, performance index, and performance grade. The models developed consider companies in four construction sectors: general building, heavy, special trade, and real estate. These models accommodate the effect of macroeconomic and industry related factors and company size on the performance evaluation. The final outcome of current research is a performance grade, which provides the performance of a construction company. The developed model is validated, which shows robust results.
CE Database subject headings: Construction industry; Performance characteristics; Egypt; Construction firms; Evaluation; Case Reports
Introduction
Performance evaluation of construction companies gains its importance from the fact that todayrsquo;s world is moving rapidly toward globalization, which means the international General Agreement on Tariffs and Trade _GATT_. The concept of GATT is to conduct business anywhere, any time, and anyhow. In this environment, many multinational companies are awarded business in other countries in which they are competing with local companies. Both multinational and local construction companies should seriously look forward to improving their performance in order to maintain their international reputation. The current study develops performance evaluation of construction companies that shows the position of such a company among others. This evaluation is deemed essential for owners, shareholders, and funding agencies of a company because it clearly draws the correct position of the company. If the company position is good, this will increase the agenciesrsquo; interest in the company and vice versa. Many models were developed to evaluate companiesrsquo; performance, but few of them consider economical and industrial changes in their models. Therefore, the major objective of the current study is to design a performance index that evaluates a companyrsquo;s financial situation within the construction industry. This model will consider the economical and industrial changes and their effect on the company.
The current study presents a performance evaluation model based on financial ratios as well as economic and industry factors. The model developed considers four construction categories _based on the Egyptian contractor union: (1) general building; (2) heavy; (3) special trade; and (4) real estate. It considers the effect of company size and economical and industrial variables on its performance. Companies that perform business across categories are not considered in the current study
Background
A number of construction companiesrsquo; performance evaluation models have been developed along the previous 5 decades. They are dealing with this problem at three different levels: (1) construction industry; (2) company; and (3) project. Models at the construction industry level are used to measure the effect of economical, political, and social changes on the performance of the construction industry as a whole. Kangari (1988) relates the changes in construction industry failure rate to some macrocosmic factors: average prime interest rates, amount of construction activity, inflation, and new business entering the construction industry. Most performance evaluation models for construction companies are based on their annual financial statements or reports. Different analytical techniques have been used to develop these ratios: (1) financial statement trend analysis; (2) financial statement structural analysis; and (3) financial statement ratio analysis. The most important variables that could be used in financial statement trend analysis to differentiate between failed and non failed companies are: accounts receivable, under-belling, accounts payable, notes payable, total long-term debts, stock and retained earnings, cost of sales, and gross profit (Basha and Hassanein 1988; Severson et al. 1994). Financial statement structural analysis determines the proportion that each companyrsquo;s group or subgroup represents in the financial statement (Hasabo 1996). A decomposition ratio is used to determine changes in the percentage of the companyrsquo;s asset components in two consecutive years (Hasabo 1996). The first statistical evaluation models to predict financial failure were developed by Beaver _1966_ but they were not targeting the construction industry. Companies were divided into two main groups: failed and non failed companies with similar asset size. Statistical models that are based on financial ratios of failed and non failed companies represent financial statement ratio analysis. Beaver _1966_ compared these two groups based upon 30 financial ratios in which there were differences in the mean values of these two groups for at least 5 consecutive years before failure, with differences increasing as the year of failure approached.
Many studies followed Beaver (1966) that investigated multivariate techniques to distinguish failed from non failed companies. The Z score (discriminate model) dealt with companies that became legally bankrupt (Altman 1968). Deakin (1972) used accounting data to perf
剩余内容已隐藏，支付完成后下载完整资料
英语译文共 6 页，剩余内容已隐藏，支付完成后下载完整资料
资料编号：[411300]，资料为PDF文档或Word文档，PDF文档可免费转换为Word
以上是毕业论文外文翻译，课题毕业论文、任务书、文献综述、开题报告、程序设计、图纸设计等资料可联系客服协助查找。
