Factor analysis to evaluate the financial performance of the construction industry in an emerging market: The case of colombia

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2018-01-01

Autores

Judith V.
Maribel S.

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Universidad Pablo de Olavide

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Factor analysis is a method used to reduce several variables into fewer dimensions called factors. This study conducts factor analysis on financial ratios of the construction companies in Colombia in the period 2000@@@@2014. According to that, the purpose of the study is to use the factorial analysis technique to determine whether the nancial ratios are related to a smaller number of unobservable factors and eliminate redundancy among them. The results show that it is possible to explain 88.753% of the variance with 13 financial ratios grouped into three factors. © 2019, Universidad Pablo de Olavide.

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