• Title of article

    Assessment of the expected construction company’s net profit using neural network and multiple regression models

  • Author/Authors

    Mohamad, H.H. Zagazig University - Faculty of Engineering - Construction Engineering Dept, Egypt , Ibrahim, A.H. Zagazig University - Faculty of Engineering - Construction Engineering Dept, Egypt , Massoud, H.H. Zagazig University - Faculty of Engineering - Construction Engineering Dept, Egypt

  • From page
    375
  • To page
    385
  • Abstract
    Net profit is an important financial performance indicator for any construction firm. Firm financial managers should strive to maximize this net profit. Modeling company’s net profit helps to investigate the serious effects of the different financial conditions on the expected net profit for the construction companies working in the Egyptian market. It simply helps financial managers to make sure that their companies business operations are running in a profitable manner. This research aims to develop a mathematical model for assessing the expected net profit of any construction company. To achieve the research objective, four steps were performed. First, the main factors affecting firms’ net profit were identified. Second, pertinent data regarding the net profit factors were collected. Third, two different net profit models were developed using the Multiple Regression (MR) and the Neural Network (NN) techniques. The validity of the proposed models was also investigated. Finally, the results of both MR and NN models were compared to investigate the predictive capabilities of the two models.
  • Keywords
    Construction company’s net profit , Neural network , Multiple regressions
  • Journal title
    Ain Shams Engineering Journal
  • Journal title
    Ain Shams Engineering Journal
  • Record number

    2648843