Ming, C S; Runeson, G and Skitmore, M (1996) Changes in profit as market conditions change: An historical study of a building firm. Construction Management and Economics, 14(3), pp. 253-264. ISSN 01446193
Abstract
This paper analyses the profits from 221 construction projects undertaken by an Australian building firm in the period 1910-1938 and examines the factors that influence the firm's profit levels. This involves a series of multiple regression analyses with three dependent variables representing profit and 26 independent variables representing economic conditions and project characteristics. From these, 11 models are derived of which two are chosen as having the best explanatory power in explaining approximately 72% of the variability in profit levels movements. The results show that unemployment, interest rates, level of construction activity in the state, change of wage level, inflation rate of building material and project value significantly influenced the firm's profit level during the period.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Australian economy; intrafirm profit; regression analysis |
| Index terms: | unemployment, multiple regression analysis, dependent variable, interest rate, inflation, construction project, market condition, profit, historical study, movement, explanatory power, variability, regression analysis, building material, building firm, construction activity, independent variable, economic condition |
| Subjects: | research methods, theoretical framing, production management, statistical analysis, organization, health behaviours and lifestyles, economic and policy analysis, building materials, economic analysis, construction operations |
| Topics: | Design Practice, Site Management, Research Practice, Project Management, Engineering Principles, Business Strategy |
| Descriptive scope: | 4 PCTA |
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