Simulation of the Influence of Different Ways of Setting the Restraint on Value of Construction Company

Simulation of the Influence of Different Ways of Setting the Restraint on Value of Construction Company

Stať ve sborníku v databázi WoS či Scopus

The main goal of the article is to describe the impact of the various retention adjustments to the construction orders/commissions, thus influencing the value of the construction company. The retention is one of the contract-based safety devices, used in the construction industry. Different ways of adjustments that affect the financing of the construction commission/contract and also the financial flows within the construction company are used. Financing within a construction company is reflected in its effectiveness and its value. In times of economic fluctuations, the value of the company is of considerable significance not solely for the owners. This article works with a standard simulation method. On the basis of real data, of one of the largest construction companies in the Czech Republic belonging to a multinational/supranational group, a simulation of the impact of various retention arrangements/adjustments on the company's financial statements (account reports) was carried out. Subsequently, the value of the company was calculated using the revenue method (yield method). For the greater informative value, the simulation was carried out in a time span of the economic crisis in the Czech Republic. The findings of the authors lead to recommendations on further researching the construction company's financing and the effectiveness of functioning of the national economy.

The main goal of the article is to describe the impact of the various retention adjustments to the construction orders/commissions, thus influencing the value of the construction company. The retention is one of the contract-based safety devices, used in the construction industry. Different ways of adjustments that affect the financing of the construction commission/contract and also the financial flows within the construction company are used. Financing within a construction company is reflected in its effectiveness and its value. In times of economic fluctuations, the value of the company is of considerable significance not solely for the owners. This article works with a standard simulation method. On the basis of real data, of one of the largest construction companies in the Czech Republic belonging to a multinational/supranational group, a simulation of the impact of various retention arrangements/adjustments on the company's financial statements (account reports) was carried out. Subsequently, the value of the company was calculated using the revenue method (yield method). For the greater informative value, the simulation was carried out in a time span of the economic crisis in the Czech Republic. The findings of the authors lead to recommendations on further researching the construction company's financing and the effectiveness of functioning of the national economy.

Accounting; Bank guarantee; Company value; Financing; Retention; WACC; Yield method

Accounting; Bank guarantee; Company value; Financing; Retention; WACC; Yield method

KORYTÁROVÁ, J.; PUCHÝŘ, B.; BOŽIKOVÁ, K.; ŠPIROCH, M.

2018

08.11.2017

Elsevier

Barcelona

International Conference on ENTERprise Information Systems, CENTERIS 2017, International Conference on Project MANagement, ProjMAN 2017 and International Conference on Health and Social Care Information Systems and Technologies, HCist 2017

1877-0509

Procedia Computer Science

2017

121

Nizozemsko

630

636

7

http://www.sciencedirect.com/science/article/pii/S1877050917322834?via%3Dihub