Factors that Affect Firm Performance:An Empirical Results of Construction Industry

• Main Authors: Le Thi Thu Tam, 李秋星
• Other Authors: GUANG DI JHANG
• Format: Others
• Language: en_US
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/82983454551072985810

碩士 === 國立臺灣科技大學 === 管理研究所 === 98 === This research examines the financial performance of 48 construction firms from the region of North America over the period of 1998-2008. The primary objective is to identify critical factors of liquidity and leverage categories that potentially affect firm performance. The research methodology relies on financial ratios analysis and multiple linear regression for fail group and un-fail group to draw meaningful conclusions. The following financial ratios are used for developing the model: Current ratio, quick ratio, working capital turnover, debt-to-equity ratio, debt ratio, asset turnover, return on assets, return on equity and free cash flow per share. Results indicate that a significant variance in firm performance is explained by these variables. The finding of this research provides managers a basis vision to evaluate their firms’ financial health in relation to its impact on firm performance.