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Atkinson, A R and Westall, R (2010) The relationship between integrated design and construction and safety on construction projects. Construction Management and Economics, 28(09), 17.

Balatbat, M C A, Lin, C-y and Carmichael, D G (2010) Comparative performance of publicly listed construction companies: Australian evidence. Construction Management and Economics, 28(09), 32.

Bowen, P, Cattell, K, Edwards, P J and Marks, J (2010) Perceptions of HIV/AIDS policies and treatment programmes by Western Cape construction firms. Construction Management and Economics, 28(09), 1006.

Chiang, Y-H and Cheng, E W L (2010) Construction loans and industry development: the case of Hong Kong. Construction Management and Economics, 28(09), 69.

Eriksson, P E (2010) Partnering: what is it, when should it be used, and how should it be implemented?. Construction Management and Economics, 28(09), 17.

Huang, Y-l and Lin, W (2010) Does debt structure matter? Estimating contractor default barrier by the down-and-out call option approach. Construction Management and Economics, 28(09), 58.

  • Type: Journal Article
  • Keywords: financial risk; down-and-out call option; maximum likelihood method; regression analysis; financial planning
  • ISBN/ISSN: 0144-6193
  • URL: https://doi.org/10.1080/01446191003762264
  • Abstract:
    The down-and-out call option approach was used to analyse contractor financial risk under shorter-term debt structures. The maximum likelihood method was applied to estimate contractor default barriers and probabilities implied by stock prices series and actual debt maturities calculated from historical debt data. Results indicate that the default barriers implied by shorter-term debt structures are higher than previous estimates using longer-term debt structures. Further regression analysis shows that implied barriers do not reflect the full effects of asset quality in ameliorating financial distress. Hence, the implied default barriers tend to be higher than the actual default barriers. When applying the DOC approach, if the implied barrier is not calibrated to reflect the borrower’s asset quality, the barrier will tend to overestimate default probability. This has important implications on contractor financial risk monitoring, security pricing and short-term financial planning.

Jones, T, Shan, Y and Goodrum, P M (2010) An investigation of corporate approaches to sustainability in the US engineering and construction industry. Construction Management and Economics, 28(09), 83.

Lehtonen, J L and Kiiras, J M (2010) Cost modelling in underpinning projects. Construction Management and Economics, 28(09), 95.

Li, Y and Liu, C (2010) Malmquist indices of total factor productivity changes in the Australian construction industry. Construction Management and Economics, 28(09), 45.