A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Predicting Construction Contractor Default with Barrier Option Model
This is the first study to apply the barrier option model to predict defaults of construction contractors and to assert that the path-dependent characteristic of the model is very suitable for describing the behavior of contractor default. Different from existing contractor-default prediction models, this research uses a much larger contractor sample in empirical analyses to alleviate sample-selection biases, and employs a Receiver Operating Characteristics (ROC) curve to assess the model performance. Empirical results of this study show that the proposed model outperforms traditional financial ratio models in differentiating the risk of defaulted and nondefaulted construction contractors. Additionally, the barrier option model has markedly better discriminatory power than when applied to non–construction-related industries. The results of this paper support the postulation that the barrier option model has significant advantages for the construction industry.
Predicting Construction Contractor Default with Barrier Option Model
This is the first study to apply the barrier option model to predict defaults of construction contractors and to assert that the path-dependent characteristic of the model is very suitable for describing the behavior of contractor default. Different from existing contractor-default prediction models, this research uses a much larger contractor sample in empirical analyses to alleviate sample-selection biases, and employs a Receiver Operating Characteristics (ROC) curve to assess the model performance. Empirical results of this study show that the proposed model outperforms traditional financial ratio models in differentiating the risk of defaulted and nondefaulted construction contractors. Additionally, the barrier option model has markedly better discriminatory power than when applied to non–construction-related industries. The results of this paper support the postulation that the barrier option model has significant advantages for the construction industry.
Predicting Construction Contractor Default with Barrier Option Model
Tserng, H. Ping (author) / Liao, Hsien-Hsing (author) / Jaselskis, Edward J. (author) / Tsai, L. Ken (author) / Chen, Po-Cheng (author)
Journal of Construction Engineering and Management ; 138 ; 621-630
2011-08-11
102012-01-01 pages
Article (Journal)
Electronic Resource
English
Predicting Construction Contractor Default with Barrier Option Model
| British Library Online Contents | 2012
Predicting Construction Contractor Default with Barrier Option Model
| Online Contents | 2012
| British Library Online Contents | 2011