Factor analysis to evaluate the financial performance of the construction industry in an emerging market: The case of Colombia

Factor analysis is a method used to reduce several variables into fewer dimensions called factors. This study conducts factor analysis on the financial ratios of the construction companies in Colombia in the period 2000-2014. According to that, the purpose of the study is to use the factorial analys...

Full description

Saved in:
Bibliographic Details
Published inRevista de métodos cuantitativos para la economía y la empresa Vol. 26; pp. 52 - 70
Main Authors Vergara, Judith, Serna, Maribel
Format Journal Article
LanguageEnglish
Published Sevilla Universidad Pablo de Olavide 06.02.2019
Subjects
construction companies
developing countries
factorial analysis
financial ratio analysis
Online AccessGet full text

Cover

More Information
Summary:Factor analysis is a method used to reduce several variables into fewer dimensions called factors. This study conducts factor analysis on the financial ratios of the construction companies in Colombia in the period 2000-2014. According to that, the purpose of the study is to use the factorial analysis technique to determine whether the financial ratios are related to a smaller number of unobservable factors and eliminate redundancy among them. The results show that it is possible to explain 88.753% of the variance with 13 financial ratios grouped into three factors.
ISSN:1886-516X
1886-516X
DOI:10.46661/revmetodoscuanteconempresa.2770