Quantifying Impact Factors of Corporate Financing: Engineering Consulting Firms

Abstract

The objective of this research is to identify and quantify the factors that influence the corporate financing for engineering consulting companies in Taiwan. The quantification, thus derived based on statistical analyses, expresses the features of the engineering consulting market that fit the company’s criteria for considerations of corporate financing. An initial survey of 118 professionals serving in both the financial and engineering consulting markets was conducted from which 36 points that influence the approval of corporate financing were summarized. The significance and quantification of the financing factors were determined from a comprehensive survey, via questionnaire, and factor analysis of two populations, comprised of a total of 1,124 firms and institutions. The conclusions give us 14 significant factors that can be classified into four component groups: For repayment-explained financing purposes, the corporate perspective, project features and public relations, and financing protection with corresponding weights being 0.328, 0.270, 0.214, and 0.188, respectively. In comparison with the most commonly accepted principle of financing, five principles, accepted by financial institutions for years, these four weighted components provide a better basis for conducting corporate financing, and a quantification measurement method for corporate financing for both practice and research.