Is the size of an enterprise in the construction industry an important prerequisite for its success?

The construction industry can currently be ranked among the most important sectors of the national economy, with a large number of companies operating within it. These undertakings differ from each other by subject of activity, place of activity, chosen strategy, the legal form of the enterprise or...

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Main Author: Groda Bořivoj
Format: Article
Language:English
Published: EDP Sciences 2017-01-01
Series:SHS Web of Conferences
Subjects:
Online Access:https://doi.org/10.1051/shsconf/20173901006
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author Groda Bořivoj
author_facet Groda Bořivoj
author_sort Groda Bořivoj
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description The construction industry can currently be ranked among the most important sectors of the national economy, with a large number of companies operating within it. These undertakings differ from each other by subject of activity, place of activity, chosen strategy, the legal form of the enterprise or the size of the enterprise. This paper aims to determine what impact the size of a construction company has on its future success, with asset returns and return on equity being considered success indicators. A data sample of 3139 construction companies from between 2011 and 2015 was used for analysis. As a result, the predetermined hypotheses have been verified: a larger enterprise generates a higher ROE and a larger enterprise generates a larger ROA. It was found that the size of the company greatly affects its liquidity.
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spelling doaj.art-a0552e181214413c9b407569842518772022-12-21T22:11:44ZengEDP SciencesSHS Web of Conferences2261-24242017-01-01390100610.1051/shsconf/20173901006shsconf_ies2017_01006Is the size of an enterprise in the construction industry an important prerequisite for its success?Groda BořivojThe construction industry can currently be ranked among the most important sectors of the national economy, with a large number of companies operating within it. These undertakings differ from each other by subject of activity, place of activity, chosen strategy, the legal form of the enterprise or the size of the enterprise. This paper aims to determine what impact the size of a construction company has on its future success, with asset returns and return on equity being considered success indicators. A data sample of 3139 construction companies from between 2011 and 2015 was used for analysis. As a result, the predetermined hypotheses have been verified: a larger enterprise generates a higher ROE and a larger enterprise generates a larger ROA. It was found that the size of the company greatly affects its liquidity.https://doi.org/10.1051/shsconf/20173901006enterprise sizeconstruction industryROAROEliquidity
spellingShingle Groda Bořivoj
Is the size of an enterprise in the construction industry an important prerequisite for its success?
SHS Web of Conferences
enterprise size
construction industry
ROA
ROE
liquidity
title Is the size of an enterprise in the construction industry an important prerequisite for its success?
title_full Is the size of an enterprise in the construction industry an important prerequisite for its success?
title_fullStr Is the size of an enterprise in the construction industry an important prerequisite for its success?
title_full_unstemmed Is the size of an enterprise in the construction industry an important prerequisite for its success?
title_short Is the size of an enterprise in the construction industry an important prerequisite for its success?
title_sort is the size of an enterprise in the construction industry an important prerequisite for its success
topic enterprise size
construction industry
ROA
ROE
liquidity
url https://doi.org/10.1051/shsconf/20173901006
work_keys_str_mv AT grodaborivoj isthesizeofanenterpriseintheconstructionindustryanimportantprerequisiteforitssuccess