Structural risk of diversified project financing of city investment company in China based on the best worst method
Engineering, Construction and Architectural Management
ISSN: 0969-9988
Article publication date: 16 December 2019
Issue publication date: 3 February 2021
Abstract
Purpose
City investment companies (CICs) in China, set up and funded by the government, are playing an important role in the construction of urban infrastructure in China. The purpose of this paper is to analyze the structural risk of diversified project financing of CICs and explore its key influencing factors.
Design/methodology/approach
The best worst method (BWM) is used in this study to empirically analyze and quantitatively study the optimization of the structural risk of diversified financing of CICs.
Findings
In this study, the structural risk of diversified financing of CICs has been clearly defined, and its key evaluation indexes, including the structure of projects, the structure of financing, asset-liability ratio, earnings before interest and tax margin, the rate of return on capital and the ratio of long-term debt and short-term debt, have been determined. What is more, a comprehensive evaluation system of the structural risk of diversified financing has been established.
Originality/value
This study has established a comprehensive evaluation system of the structural risk of diversified financing. Based on the validated systematic evaluation, comparison and ranking of the structural risk of diversified financing of CICs by using the BWM, the ranking results can help investors to select the CICs with small structural risk of diversified financing to invest.
Keywords
Acknowledgements
The authors wish to thank the National Natural Science Foundation of China (Grant No. 51608363).
Citation
Wang, Y. and Jin, X. (2021), "Structural risk of diversified project financing of city investment company in China based on the best worst method", Engineering, Construction and Architectural Management, Vol. 28 No. 1, pp. 196-215. https://doi.org/10.1108/ECAM-05-2019-0249
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited