An integrated DEA-based model to measuring financial performance of construction companies

Part of : WSEAS transactions on business and economics ; Vol.8, No.1, 2011, pages 1-15

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Pages:
1-15
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Abstract:
This paper proposes an evaluation model which effectively assesses the financial performance of construction companies. This model successfully combines the methods of Strength Weakness Opportunity Threats (SWOT), Canonical Correlation Analysis (CCA) and Data Envelopment Analysis (DEA). The model first analyzes the operational characteristics of construction companies by using SWOT and, therefore, selects the representative indicators for evaluating financial performance. Next, it adopts CCA to solve the problems generated by the indicators correlation and ensures the ability to distinguish performance evaluation. The model finally can utilize DEA to acquire reasonable efficiency values and priorities of financial performance. Through the case studies presented in the paper, it is evident that the proposed model is an effective tool that can rationally execute performance evaluation of construction companies and also suggests valuable improvements for company operations.
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Keywords:
financial performance, indicators correlation, evaluation model, construction companies, data envelopment analysis
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