Impacts of Macroeconomic Fluctuations on Insolvency: Case of Korean Construction Companies

Review of Exogenous Economic Indicators Influencing Construction Industry

“…Bok et al [15] stated that understanding the concept of exogenous factors helps to appreciate the functioning of a complicated modern economic system, describe how the economy as a whole functions, and how the basis of aggregate demand and supply is determined. In a relation to this, proper management of exogenous economic indicators brings stability in price level and analyses fluctuations in business activities and also suggests policy measures to control inflation and deflation [16][17][18][19][20].…”

“…Advances in Civil Engineering and employment rate in construction and energy market condition (crude oil price) were the indicators. Sang et al [18] assessed the impact of GDP, CPI, Korean composite stock price index, currency exchange rate, certificate of deposit interest rates, and corporate bond yields during insolvency of the Korean Construction Companies. Alfouzana and Khalafallah [40] identified the high cost of construction cost in Riyadh, Saudi Arabia, as a result of increase in oil prices, large demand for construction materials and labour due to government projects for housing, high demand for schools, hospitals, housing, low supply of housing, rapid rise in population growth, manipulation and monopoly of suppliers of construction materials, lack of trained labour, absence of the government in monitoring prices, corruption in monitoring government projects, existence of black market, high inflation rate, and exportation of construction materials outside of Saudi Arabia.…”

Towards the Establishment of Relationship between Macroeconomic Indicators and Cost of Public Educational Buildings in Ghana

“…It analyzes the forces which determine economic growth of a country and explains how to reach the highest state of economic growth and sustain it and also how to bring stability in price level and analyze fluctuations in business activities. It suggests policy measures to control inflation and deflation [13][14][15][16]. Various studies have identified macroeconomic indicators to include gross domestic product (GDP), consumer price index, currency exchange rate, and interest rate [14].…”

“…It suggests policy measures to control inflation and deflation [13][14][15][16]. Various studies have identified macroeconomic indicators to include gross domestic product (GDP), consumer price index, currency exchange rate, and interest rate [14]. Halim (2017) [15] identified macroeconomics as dependent and independent variables.…”

Performance of Construction Companies in Southeast Asia using Static and Dynamic Panel Data

“…The importance of the ratio is not only different from industry to industry but also from country to country Many variables both internal and external variables have different influences that affect the performance of construction companies. Measuring construction performance, previous researchers used capital structure variables in in Malaysia [36] and in China [27], corporate management variables in Indonesia [41], solvency variables in Romania [42], market structure variables and ownership structures in China [27], firm concentration in the UK [28], financial ratio variables in Indonesia [34], profit level variables, growth and ownership in the UK [17], macroeconomic variables in Korea [38], economic activity in Spain [31], GDP variables in Ghana [3] [15] [6]. Lee et al (2016) also showed the differences in company's performance and risk due to the host-country effect in construction companies in Korea.…”