Business Failure in Construction Industry
- 1 June 1988
- journal article
- Published by American Society of Civil Engineers (ASCE) in Journal of Construction Engineering and Management
- Vol. 114 (2) , 172-190
- https://doi.org/10.1061/(asce)0733-9364(1988)114:2(172)
Abstract
Business failure is an extremely disruptive force in the construction industry. The chance of failure for a construction company has increased over the past 10 years. In the past five years, the average age of a construction company at failure has been declining. Construction companies must always be aware of the possibility of business failure. Constant monitoring of their financial condition through the use of financial ratios is key. Overall industry indicators must also be monitored and trends analyzed to determine swings in failure probabilities. This paper investigates the effect of macroeconomic factors on business failures in the construction industry, and develops a model for evaluating and forecasting these failures.Keywords
This publication has 2 references indexed in Scilit:
- Portfolio Theory: Applications in ConstructionJournal of the Construction Division, 1977
- An Empirical Test of Financial Ratio Analysis for Small Business Failure PredictionJournal of Financial and Quantitative Analysis, 1972