Title The DCiF Model and Credit Evaluation on Korean Construction Companies
Authors Park, Tong-Kyu
Page pp.97-106
ISSN 1229-7534
Keywords The DCiF model ; The DCiF indices ; Credit evaluation on the construction companies ; Construction financing
Abstract Credit evaluation by domestic financial institutions on Korean construction companies has had many problems with its tools and criteria ignoring the industrial characteristics. This study develops the DCiF(discounted cash inflow) model as a solution and discusses its usage in construction financing. It also examines the significance of the DCiF indices through regressions and statistical comparison with the other credit evaluation estimates. The results show its clear significance and consistent fitness. Based on the empirical results, implications and methodology are provided for the effective use of the indices in credit evaluation on the construction companies.