Key factors influencing the performance of construction companies

• Autor(a) principal: Santos, Jorge Nuno Ferrão
• Data de Publicação: 2020
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/29822
• topic: Construction; Return on assets; Cash holdings; Governmental ownership; Construção; Retorno sobre ativos; Liquidez; Participações governamentais; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

In this dissertation we analyse what main factors impact the performance of companies in the construction sector. We find strong evidence that having a high equity ratio, having a large amount of its resources in cash, being able to supply credit to customers, having the government as a shareholder and having a control shareholder are factors that are positively related with performance. Besides these factors we also find that size has an ambiguous relationship with performance and that having a bank as a shareholder is, weakly, negatively related with financial performance. Furthermore, we find that the factors influencing performance on absolute terms are quite similar to the factors influencing relative performance. Our results are robust and hold, with minor differences, across the models we use.