Title Determinants of Efficiency of Specialty Construction Companies Using DEA and Tobit Regression Models
Authors Jung, Dae-Woon ; Son, Young-Hoon ; Kim, Kyung-Rai
DOI https://dx.doi.org/10.6106/KJCEM.2024.25.2.045
Page pp.45-55
ISSN 2005-6095
Keywords Specialty Construction Company; Efficiency; Data Envelopment Analysis (DEA); Tobit Regression Analysis
Abstract This study analyzed the efficiency determinants of specialty construction companies by industry using the DEA model and the Tobit model. The analysis targets are 394 specialty construction companies as of 2022. As a result of analysis of efficiency determinants using 12 company characteristics as independent variables, the biggest problem for specialty construction companies was overall efficiency reduction due to rising labor costs. In addition, in a situation where construction companies' loan regulations are severe, the debt ratio was found to have a positive effect on efficiency. Company size had a different impact by industry, and the number of businesses held, credit score, and total capital turnover had an effect only on some industries. This study presents results that are an advance on existing research in that it strategically analyzes factors for improving the efficiency of specialty construction companies. However, it has limitations such as limiting the analysis to only specialty construction companies subject to external audit, insufficient number of companies subject to analysis by industry, and analyzing relative efficiency in the same category for each industry.