Modelling profitability and effectiveness of Greek-listed construction firms: An integrated DEA and ratio analysis

Tsolas, IE

dc.contributor.author	Tsolas, IE	en
dc.date.accessioned	2014-03-01T02:02:58Z
dc.date.available	2014-03-01T02:02:58Z
dc.date.issued	2011	en
dc.identifier.issn	01446193	en
dc.identifier.uri	https://dspace.lib.ntua.gr/xmlui/handle/123456789/29334
dc.subject	Construction firms	en
dc.subject	Data envelopment analysis	en
dc.subject	Effectiveness	en
dc.subject	Greece	en
dc.subject	Profitability efficiency	en
dc.subject.other	Competitive advantage	en
dc.subject.other	Construction firms	en
dc.subject.other	Construction performance	en
dc.subject.other	Data envelopment	en
dc.subject.other	Effectiveness	en
dc.subject.other	Explanatory variables	en
dc.subject.other	Greece	en
dc.subject.other	Ordinary least squares	en
dc.subject.other	Profit margin	en
dc.subject.other	Project levels	en
dc.subject.other	Ratio analysis	en
dc.subject.other	Two-step approach	en
dc.subject.other	Competition	en
dc.subject.other	Construction industry	en
dc.subject.other	Data envelopment analysis	en
dc.subject.other	Efficiency	en
dc.subject.other	Profitability	en
dc.subject.other	competitiveness	en
dc.subject.other	construction industry	en
dc.subject.other	data envelopment analysis	en
dc.subject.other	numerical model	en
dc.subject.other	performance assessment	en
dc.subject.other	profitability	en
dc.subject.other	stakeholder	en
dc.subject.other	Greece	en
dc.title	Modelling profitability and effectiveness of Greek-listed construction firms: An integrated DEA and ratio analysis	en
heal.type	journalArticle	en
heal.identifier.primary	10.1080/01446193.2011.610330	en
heal.identifier.secondary	http://dx.doi.org/10.1080/01446193.2011.610330	en
heal.publicationDate	2011	en
heal.abstract	Existing research on construction performance measurement is dominated by project level studies, and the firm stakeholders require the development of models that compare performance in terms of efficiency. A new framework that integrates data envelopment analysis (DEA) and ratio analysis using a two-step approach is described to evaluate performance in terms of profitability and effectiveness of a sample of construction firms listed on the Athens Exchange. In the first step, profitability and effectiveness are assessed by employing DEA and by using the profit margin (i.e. income-to-sales ratio), respectively. In the second step, a Tobit and an ordinary least squares model are used in order to identify the drivers of profitability efficiency and effectiveness, respectively. Results do point out positive links between profitability efficiency and effectiveness. Profitability inefficiency can be explained by the size and expenses-to-total revenue ratio, whereas effectiveness can be explained only by the latter explanatory variable. The research framework may benefit not only Greek construction firms, but also firms in other countries to quantify their performance and improve their competitive advantages. © 2011 Taylor & Francis.	en
heal.journalName	Construction Management and Economics	en
dc.identifier.doi	10.1080/01446193.2011.610330	en
dc.identifier.volume	29	en
dc.identifier.issue	8	en
dc.identifier.spage	795	en
dc.identifier.epage	807	en