C19 Edum-Fotwe (1995) Transformed financial ratio models for improved contractor evaluation.pdf (3.36 MB)
Transformed financial ratio models for improved contractor evaluation
conference contributionposted on 2017-01-31, 12:12 authored by Francis Tekyi Edum-Fotwe, Andrew Price, Tony ThorpeTony Thorpe
The application of financial ratio models for contractor evaluation has been used to provide an overall perspective of a contractor's potential for failure, and to serve as a basis for the contractor's strategic planning. The poor performance of such models has prompted concern over their suitability for such evaluations. The inefficiency of ratio models has been associated with two factors: data quality for model estimation; and the range of classifications that the models can achieve. Analysis with thirty-three basic ratio samples showed that most ratios do not conform to the normality condition required to satisfy the technique for their estimation. Two transformation approaches are proposed to enhance the data quality and to expand the classification range for developing improved ratio models.
- Architecture, Building and Civil Engineering
Published inFirst International Conference on Construction Project Management: Innovation and Dynamism for Future Prosperity First International Conference on Construction Project Management: Innovation and Dynamism for Future Prosperity
Pages559 - 567
CitationEDUM-FOTWE, F., PRICE, A. and THORPE, A., 1995. Transformed financial ratio models for improved contractor evaluation. IN: Proceedings of 1995 1st International Conference on Construction Project Management: innovation and dynamism for future prosperity, Singapore, January 1995, pp.559-567.
PublisherNanyang Technological University
- VoR (Version of Record)
Publisher statementThis work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/