Title: Corporate bankruptcy during economic crisis: a financial analysis of the Greek construction sector

Authors: Spyros Repousis; Petros Lois; Demetris Vrontis; Alkis Thrassou; Savvas Meggios

Addresses: School of Business, University of Nicosia, Makedonitissis 46, CY-2417, Nicosia, Cyprus ' School of Business, University of Nicosia, Makedonitissis 46, CY-2417, Nicosia, Cyprus ' School of Business, University of Nicosia, Makedonitissis 46, CY-2417, Nicosia, Cyprus ' School of Business, University of Nicosia, Makedonitissis 46, CY-2417, Nicosia, Cyprus ' School of Business, University of Nicosia, Makedonitissis 46, CY-2417, Nicosia, Cyprus

Abstract: This research analyses financial data from published statements on the performance of the four largest companies operating in the Greek construction sector and uses Altman Z-score to predict corporate bankruptcy. Findings show that companies' financial positions were substantially adversely affected by the recession in Greek economy and that companies were in an unsafe position or directly at risk of bankruptcy over the mid-late 2010s. Secondary data analysis showed that in the latter part of the decade (2018+) the Greek construction industry recovered, driven by positive developments in economic conditions, which led to a revival in both investor and consumer confidence. The country's construction industry registered growth of 7.9% in 2018, in real terms, which was up from 0.4% in 2017. The research's prediction is that the government plans to invest €2.8 billion in transport networks during the period of 2019-2027 will effectively boost the construction sector.

Keywords: construction sector; bankruptcy; financial analysis; Altman Z-score; Greece.

DOI: 10.1504/JIBED.2021.10041932

Journal for International Business and Entrepreneurship Development, 2021 Vol.13 No.2, pp.152 - 176

Received: 07 Apr 2021
Accepted: 02 May 2021

Published online: 18 Oct 2021 *

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