Kangari, R and Riggs, L S (1988) Portfolio management in construction. Construction Management and Economics, 6(2), pp. 161-169. ISSN 01446193
Abstract
When a construction company invests in a variety of projects, the combination can be viewed as a portfolio of projects. Such a portfolio is efficient if the contractor can diversify the projects. In general, a diversified portfolio of projects is less risky than the average of the individual projects considered alone. It is important to recognize that investment in construction projects differs somewhat from that in securities. For example, construction projects typically are not divisible, whereas securities are. These differences have caused many difficulties in the application of the portfolio theory in construction. The objective of this paper is to explore these problems and present solutions for them.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction; diversification; financial management; management; portfolio theory; risk analysis |
| Index terms: | diversification, financial management, portfolio management, risk analysis, construction project, construction company |
| Subjects: | production management, market analysis, environmental hazards, organization, economic analysis |
| Topics: | Research Practice, Project Management, Business Strategy, Sustainability |
| Descriptive scope: | 2 PC |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here