| Title |
Analysis of Dynamic Relationship between Changes in Domestic and Overseas Orders and Insolvency of Construction Companies |
| DOI |
http://dx.doi.org/10.6106/KJCEM.2014.15.2.087 |
| Keywords |
Change in business structure ; Management status ; Vector error correction model |
| Abstract |
This study aims to analyze the relationship. The study applies EDF (Expected Default Frequency) as a variable that indicates management status of a construction company. To analyze changes in business structure of construction companies, the study refers to the amounts of domestic and overseas project orders as variables. The data was retrieved from TS2000 established by Korea Listed Companies Association (KLCA), Statistics Korea and International Contractors Association of Korea. The analysis period is between first quarter of 2001 and fourth quarter of 2010. The analysis results showed that as more domestic and overseas orders rolled in for domestic companies, their business conditions improved as the hypothesis suggested. However, the level of improvement varied. Further, when construction companies' business slowed down, the proportion of overseas projects tended to rise, while the ratio of domestic business decreased. |