Comparative performance of publicly listed construction companies: Australian evidence

Abstract

Understanding the performance of publicly listed Australian construction companies, in comparison with other Australian listed companies, is vital to the construction sector’s continuous access to capital from the public equity market. Evidence on the performance of construction companies that do business in building and/or civil infrastructure is presented and compared with the Australian All Ordinaries Index and a portfolio of publicly listed (blue chip) companies. Using fundamental analysis, a comprehensive assessment on a range of financial and performance indicators is provided (including share prices, equity valuation multiples and profitability ratios) over the 10‐year period, 1998 to 2007. The results show that, apart from the period when the Goods and Services Tax was introduced in 2000, the performance of publicly listed Australian construction companies in most of the indicators assessed is comparable to the largest traded shares on the Australian Securities Exchange. The empirical evidence is encouraging and could potentially elicit interest and confidence for investors to invest in construction companies.Financial ratios, company performance, market performance,

The effects of the global financial crisis on the Australian building construction supply chain

“…Recent studies (Abdul-Rasheed and Tajudeen 2006, Chen 2009, Balatbat et al 2010, Balatbat et al 2011 have excluded building material suppliers and real estate investment trusts (REITs) in the review of financial performance, ignoring their importance within the building construction industry. An industry report estimates about 6,100 establishments to be operating in the materials supply sector in 2010-11 generating an estimated AUD20.5 billion in annual revenues (IBISWorld 2011b).…”

Complex Evaluation of the Economic Crisis Impact on Lithuanian Industries

“…The industries analysed in the paper are identified according to the 2 nd -digit level classification of economic activities (based on NACE2) published by Statistics Lithuania (official national authority in the sphere of statistics). With regards to experience of other authors (Erdogan 2013;Kotane, Kuzmina-Merlino 2012;Balatbat et al 2010;Hsu 2013;Hosseini et al 2013;Abbas et al 2012;Al-Malkawi 2013), the system of financial state and performance indicators is composed of four main groups of enterprise financial ratios: profitability, liquidity, solvency and asset turnover. The indicators selected for the research and their formulas are presented in Table 1.…”

“…Analysis of enterprise financial indicators is also applicable for studying economic sectors or industries. The research of that kind deals with generalised (average) values of financial indicators of a group of enterprises or the whole industry assessing efficiency of companies' performance (Li et al 2011), studying the relation between enterprise performance and the value of its shares (Balatbat et al 2010;Hosseini et al 2013), performing comparative analysis of inter-industry performance or inter-state industries' evolution (Kotane, Kuzmina-Merlino 2012; Claudiu-Marian 2011; Hon, Chu 2011), implementing the research on the relations between enterprise size, organization structure, market share or market concentration, and performance (Hays et al 2009;Uslayet al 2010) and other research of the similar nature.…”

Trend of the Research on Public Funded Projects

“…In response to this common procedure, the target papers published relatively earlier tend to adopt more qualitative methodologies to conduct the researches, which have them grouped into the catalogues of field report and theoretical analysis. Researches targeting at producing field reports normally start with introducing the background and macro-context of the selected PFP [45], review existing literatures [46], then move to investigate current situation through qualitative methods such as empirical study [47], questionnaire [48], survey [49], indepth interview [50], focus group meeting [51], workshop [52], and comparative study [53], and end up with summary of existing problems and solutions [54], as well as suggestions of the authors [44]. Considering the study of Rosner et al [55], under the situation that design-build (DB) method continues to grow for delivering construction project in both the private and public sector, the researchers chose to validate this delivery method in a special kind of PFPs, military construction programs.…”