Corporate bankruptcy during economic crisis: a financial analysis of the Greek construction sector

The article is focused on verification of the presumption of poor financial management in companies operating in the building sector. Many authors have written about a financial situation of enterprises in the building sector, especially after the economic crisis in the year 2008, when some of them claim and their results confirm that the main reason of bankruptcy of these companies was not the economic crisis but mainly poor financial management. Our results, which were obtained especially by the method of financial analysis and further by a mathematical and statistical method, support this statement. Within the mathematical and statistical methods, there was return on equity used as an explanatory variable, mainly because all variants of the Altman Z-Score are based on the calculation of ratio indicators, which do not include this type of return. Based on the conducted tests it is possible to state that it is highly desirable for the monitored enterprises in the building industry to reach positive values of return on equity.

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Mind the Gap: Professionalization is the Key to Strengthening Safety and Leadership in the Construction Sector

International Journal of Environmental Research and Public Health ◽

10.3390/ijerph16112045 ◽

2019 ◽

Vol 16 (11) ◽

pp. 2045 ◽

Cited By ~ 2

Author(s):

Álvaro Romero ◽

María de las Nieves González ◽

María Segarra ◽

Blasa María Villena ◽

Ángel Rodríguez

Keyword(s):

Private Sector ◽

Focus Groups ◽

Economic Crisis ◽

Risk Prevention ◽

Great Similarity ◽

Construction Sector ◽

The Public ◽

European Survey ◽

Comparative Review

The aim of this paper is to analyze the reality of risk prevention in construction sector companies in Spain, from the perspective of training, management, and risk prevention, as well as the amount of resources that are allocated to those budget headings. An in-depth comparative review has been conducted, using the data obtained from two focus groups that were expressly created for the study, in conjunction with the Second European Survey of Enterprises on New and Emergent Risks (ESENER-2) and its Spanish counterpart (ESENER-2 Spain). The focus groups were formed with agents and entrepreneurs involved in the construction sector, from both the public and the private sector, in order to provide greater impartiality to the resulting data. The principal strategic indicators that served as a guideline for the moderators of the different focus groups were analyzed. The results obtained show great similarity between the data from the focus groups and the data from ESENER-2 and ESENER-2 Spain; which demonstrates the idiosyncrasies that surround this productive sector in the European setting, so badly treated by the economic crisis. All of these points highlight the imperative need to professionalize the construction sector, implementing a “risk prevention culture” among all of the agents involved in the constructive-preventive processes that surround construction activities.

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A study of corporate failure using data envelopment analysis and quadratic discriminant analysis: the case of the Greek construction sector during the period of the economic crisis

International Journal of Financial Engineering and Risk Management ◽

10.1504/ijferm.2019.101293 ◽

2019 ◽

Vol 3 (2) ◽

pp. 200

Author(s):

Apostolos G. Christopoulos ◽

Nikolaos Demiroglou ◽

Ioannis G. Dokas

Keyword(s):

Data Envelopment Analysis ◽

Discriminant Analysis ◽

Economic Crisis ◽

Data Envelopment ◽

Quadratic Discriminant Analysis ◽

Construction Sector ◽

Corporate Failure ◽

Using Data

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Comportamiento de las entidades integrantes del sistema financiero costarricense durante la crisis económica mundial de 2008. Costa Rican financial system entities behavoir during 2008 world economic crisis.

TEC Empresarial ◽

10.18845/te.v11i3.3364 ◽

2017 ◽

Vol 11 (3) ◽

pp. 27

Author(s):

Hernán Rojas Blanco

Keyword(s):

Financial Crisis ◽

Economic Crisis ◽

Financial Analysis ◽

Financial System ◽

Costa Rican ◽

Mitigation Strategies ◽

Actual Duration ◽

El Sistema ◽

World Economic ◽

World Economic Crisis

Resumen Uno de los fenómenos financieros de mayor importancia e impacto mundial de las últimas décadas fue la crisis económica mundial de 2008. Fenómeno que, a pesar de tener un origen territorialmente focalizado, tuvo un impacto global. El presente artículo analiza el comportamiento del sistema financiero costarricense en medio del fenómeno económico citado. Para explicar dicha conducta, es de suma importancia ahondar en el actuar financiero y contable de cada una de las entidades que lo componen, con el objetivo de determinar su proceder y evolución en los períodos de pre-crisis, crisis y post-crisis. El análisis financiero propuesto se desarrolló mediante una metodología basada en el análisis de datos a nivel granular (extracción, procesamiento y visualización), agrupados posteriormente mediante la generación y caracterización de clúster. La implementación de este tipo de metodología posibilitó la determinación del período real de la vigencia de los efectos de la crisis en el sistema financiero, las estrategias de mitigación implementadas contra sus efectos y comportamiento cíclico mantenido por las entidades financieras en observación. Abstract The 2008 world economic crisis became one of the most important and globally impacting events of the last decades. Despite having a specific territorial origin, this phenomenon had a major global impact. The present article analyzes the performance of one of the main economic components, which is the financial system, particularly the Costa Rican financial system, throughout the aforementioned economic phenomenon. To explain such performance, it is important to go into detail on the financial and accounting procedures of each of its entities, in order to determine its behaviors and evolution before, after, and mainly, throughout the duration of this financial crisis. The proposed financial analysis was developed following an approach based on data analysis at a granular level (extractions, processing, and visualization), subsequently grouped through a cluster generation and characterization. The implementation of this methodology allowed to determine the actual duration of the effects of such financial crisis, and the mitigation strategies that were implemented against its effects and cyclical behavior (with predictive characteristics) of the overall observed financial entities.

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The Italian Construction Sector Scenariobetween Economic Crisis and the Need for More Energy Efficiency

Journal of Civil Engineering and Architecture ◽

10.17265/1934-7359/2019.02.008 ◽

2019 ◽

Vol 13 (2) ◽

Author(s):

Massimo Rossetti

Keyword(s):

Energy Efficiency ◽

Economic Crisis ◽

Construction Sector

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Primary sector in Italy: profitability dynamics and relationship with the international economic crisis

International Journal of Productivity and Performance Management ◽

10.1108/ijppm-05-2020-0229 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Guido Migliaccio ◽

Pietro Pavone

Keyword(s):

International Economic ◽

Economic Crisis ◽

Financial Analysis ◽

Geographic Location ◽

Income Dynamics ◽

Content Type ◽

Return On Equity ◽

Average Value ◽

Primary Sector ◽

Return On Sales

PurposeThis paper investigates the income dynamics of Italian primary sector, during and after the international economic crisis. It focuses on three research questions: what has been the evolution of the main profitability ratios of agricultural enterprises in recent years? After the crisis, have the surviving farms increased their profitability? Has the profitability been different also in relation to the geographic location?Design/methodology/approachIncome dynamics of a sample of companies have been analyzed, obtaining the 10-year evolution of the average value of three income indices (return on equity [ROE], return on assets [ROA] and return on sales [ROS]). Statistical elaborations and the analysis of variance (ANOVA) method have been used.FindingsThe years of the international economic crisis are often characterized by higher incomes than the following ones. The descending trend involves all three national macroareas of Italy, although characterized by considerable socioeconomic differences.Research limitations/implicationsThe study considers only the society that survived the crisis, so, presumably, the strongest. Moreover, other ratios should be considered in order to have a more complete view.Practical implicationsPublic policymakers could use this study for a better intervention in support of agricultural and agro-industrial activities.Social implicationsThe careful economic and financial analysis of the sector favors the relaunching strategies of the Italian primary sector in which many employees work.Originality/valueThe research contributes to the literature by providing a quantitative analysis of the dynamics of the sector, through the comparative information that may be derived from financial statements.

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