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Impact of corporate credit scoring on construction contractors in China
In an attempt to enhance the trustworthiness of contractors and reduce corruption, the China Government has launched a construction contractor credit scoring (CCCS) scheme in Beijing for evaluating the compliance and integrity of contractors registered in the construction market. The contribution of...
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| Main Authors: | , , , , , |
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| Format: | Default Article |
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2019
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| Subjects: | |
| Online Access: | https://hdl.handle.net/2134/36765 |
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| _version_ | 1822542023632093184 |
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| author | Bo Xiong Martin Skitmore Paul Xia Pablo Ballesteros-Perez Kunhui Ye Xiaoling Zhang |
| author_facet | Bo Xiong Martin Skitmore Paul Xia Pablo Ballesteros-Perez Kunhui Ye Xiaoling Zhang |
| author_sort | Bo Xiong (115379) |
| collection | Figshare |
| description | In an attempt to enhance the trustworthiness of contractors and reduce corruption, the China Government has launched a construction contractor credit scoring (CCCS) scheme in Beijing for evaluating the compliance and integrity of contractors registered in the construction market. The contribution of this paper to the Body of Knowledge is to analyze how the incorporation of CCCS may affect general contractors’ present and future competitiveness through a case study in China. The paper analyzes the procurement of 158 building projects tendered in Beijing, involving 2071 local general contractors active in the market. The results show that (1) the contractors’ CCCS scores are important for being awarded large and mega project contracts; (2) CCCS scores have a generally positive effect on future corporate financial income; and (3) that, contrary to expectations, the policy does not increase the CCCS of companies. Finally, it is observed how the changing trend in contractors’ CCCS scores is highly correlated with their initial values (the scores of higher CCCS scoring companies increase faster on average than other companies). Final remarks concern ways to better implement CCCS schemes in the future and avoid the potential risks involved in their use. |
| format | Default Article |
| id | rr-article-9438320 |
| institution | Loughborough University |
| publishDate | 2019 |
| record_format | Figshare |
| spelling | rr-article-94383202019-01-26T00:00:00Z Impact of corporate credit scoring on construction contractors in China Bo Xiong (115379) Martin Skitmore (7177769) Paul Xia (7177772) Pablo Ballesteros-Perez (4862347) Kunhui Ye (7177775) Xiaoling Zhang (420384) Other built environment and design not elsewhere classified Credit scoring Project procurement Construction contractor Policy evaluation China Built Environment and Design not elsewhere classified In an attempt to enhance the trustworthiness of contractors and reduce corruption, the China Government has launched a construction contractor credit scoring (CCCS) scheme in Beijing for evaluating the compliance and integrity of contractors registered in the construction market. The contribution of this paper to the Body of Knowledge is to analyze how the incorporation of CCCS may affect general contractors’ present and future competitiveness through a case study in China. The paper analyzes the procurement of 158 building projects tendered in Beijing, involving 2071 local general contractors active in the market. The results show that (1) the contractors’ CCCS scores are important for being awarded large and mega project contracts; (2) CCCS scores have a generally positive effect on future corporate financial income; and (3) that, contrary to expectations, the policy does not increase the CCCS of companies. Finally, it is observed how the changing trend in contractors’ CCCS scores is highly correlated with their initial values (the scores of higher CCCS scoring companies increase faster on average than other companies). Final remarks concern ways to better implement CCCS schemes in the future and avoid the potential risks involved in their use. 2019-01-26T00:00:00Z Text Journal contribution 2134/36765 https://figshare.com/articles/journal_contribution/Impact_of_corporate_credit_scoring_on_construction_contractors_in_China/9438320 CC BY-NC-ND 4.0 |
| spellingShingle | Other built environment and design not elsewhere classified Credit scoring Project procurement Construction contractor Policy evaluation China Built Environment and Design not elsewhere classified Bo Xiong Martin Skitmore Paul Xia Pablo Ballesteros-Perez Kunhui Ye Xiaoling Zhang Impact of corporate credit scoring on construction contractors in China |
| title | Impact of corporate credit scoring on construction contractors in China |
| title_full | Impact of corporate credit scoring on construction contractors in China |
| title_fullStr | Impact of corporate credit scoring on construction contractors in China |
| title_full_unstemmed | Impact of corporate credit scoring on construction contractors in China |
| title_short | Impact of corporate credit scoring on construction contractors in China |
| title_sort | impact of corporate credit scoring on construction contractors in china |
| topic | Other built environment and design not elsewhere classified Credit scoring Project procurement Construction contractor Policy evaluation China Built Environment and Design not elsewhere classified |
| url | https://hdl.handle.net/2134/36765 |