Adjustment behaviour of capital structure over the business cycles: evidence from the construction industry of Taiwan

Prior studies have found that firms may deviate from the target capital structure in the short run and adjust towards the target in the long run. However, little attention has been given to the adjustment behaviour of capital structure in the construction industry over the business cycles, in particular within the context of emerging markets. The partial adjustment model with the GMM (i.e. generalized method of moments) estimation is used to examine the adjustment behaviour of capital structure in the construction industry within the context of Taiwan during the period 1982 to 2007. The results suggest that, first, the average rate of adjustment is 26.3% of the adjustment gap between the target debt ratios and the previous debt ratios for firms in the construction industry of Taiwan. However, the average rate of adjustment towards the target debt ratios has slowed down after the Asian financial crisis of 1997. Secondly, firms with the financial constraint of over‐leverage relative to the target debt ratios have lower debt ratios than those firms with the financial constraint of under‐leverage. In addition, the difference in debt ratios between firms with the financial constraint of over‐leverage and under‐leverage has become narrower after the Asian financial crisis. Lastly, the findings suggest that macroeconomic conditions do not have a significant, negative effect on debt ratios.     

论高校基建投资效益的经济特性

详细分析了高校基建投资效益的三个经济特性，即基建管理效益经济特性、论证决策效益经济特性、工程建设效益经济特性，提出了强化高校基建投资效益的提高是促进学校发展的重要因素，也是高校基建工作的首要任务。     

A Meta-frontier method of decomposing long-term construction productivity components and technological gaps at the firm level: evidence from Malaysia

There is a need for a better approach to measure construction productivity rigorously, multilaterally, longitudinally and decomposed into its components. In response, this paper offers a robust approach to analysing construction productivity at the firm level that has been lacking in the industry to date, by measuring the Total Factor Productivity (TFP) of 37 public-listed Malaysian construction firms over 14 years (2003–2016), based on the Färe-Primont index. In comparing different groups of building, civil and specialist construction firms, this is the first application of a meta-frontier framework to capture the technological gaps involved. Based on the construction firms’ financial data, it is found that TFP improvement generally occurs due to Technical Efficiency (TE) and Scale-Mix Efficiency (SME) (largely scope economies), and significant technological gaps exist among different groups. Moreover, the industry suffered a decline in technologically related production environment over the period – prompting the conclusion that long-term policy engagement should focus on technological improvements. The paper provides a robust approach to analysing construction productivity at the firm level that also can be used for accessing productivity components and technological gaps in construction and other industries.