Analysis of financial performance and its impact on the generation of value: an assessment of the construction industry

Abstract

The crisis has led to the disappearance of many companies worldwide, even more when they have a low level of capital concentration or have no support in other organizations, however, the construction sector is an area with a high level of comprehensive development, this has unique attributes that some sectors manage it in low proportion, which are the volume of capital and the magnificent management administration, however, being an organization will always have risks attached to its function, ie, it does not exempt liquidity and insolvency risks, there have been fortuitous events that have made impossible the development of this sector, However, being an organization, it will always have risks attached to its function, that is to say, it does not exempt from liquidity and insolvency risks, there have been fortuitous events that have made the development of this sector impossible, in several countries the temporary crises forged these companies to award a higher criterion of adaptability to changes, for such arguments this study seeks to analyze the factors that influence the financial performance and the generation of economic value; for its execution the liquidity, solvency and management ratios will be used against variables of profitability on assets and equity (ROA and ROE), the development and analysis will be with the statistic of fixed and random effects, not without first developing a Hausman test that allows choosing the appropriate model for these variables; the study will be developed in three years (2017, 2018, 2019 and 2020) after observation and correction of the level of variability; the variable that awarded greater significance in the study of economic value is the indebtedness, this with a level p<0. 001 determines a value with a high level of affinity. Indebtedness is a transcendental variable in several studies, certain authors allude that the high concentration of this could be detrimental to sustainability, on the other hand, explicit arguments mention that everything depends on the line of business and the efficiency with which these third-party resources are managed.