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Association of Management Tools with the Financial Performance of Companies: The Example of the Slovenian Construction Sector

Keywords: indicators , scores , financial performance , construction industry , Slovenia

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Abstract:

The research problem dealt with in this article addresses the association of management tools with the financial performance of companies in the Slovenian construction sector. The aim of the quantitative empirical survey is to collect data on five of the most relevant accounting scores and indicators in the construction sector for the studied period 2001–2005, and to analyse their correlation with the management tools of Slovenian construction companies. The analysis of the relationship between quantitative indicators and scores with the dimensions of the factors in choosing management tools proved no strong correlation. The resultsof the analysis showthat the dimensions of undesirable consequences of transformation and the financial performance of the companies are essentially unrelated. A comparative study of the arithmetic mean of the indicators and scores with the disadvantages in introducing the management tools, however, indicated that there is a certain relationship between them.

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