We found a match
Your institution may have rights to this item. Sign in to continue.
- Title
Diversification by the largest US contractors.
- Authors
Kim, Hyung-Jin; Reinschmidt, Kenneth F.
- Abstract
Market diversification may be a corporate strategy for risk management, for firm growth, or both. The purpose of diversification, either reduction of market risks or growth of revenues and profits, affects a contractor's selection of market sectors to enter. Diversification into different sectors affects the contractor's portfolio of business and its financial performance. The current study performs an empirical analysis of contractors' diversification using US construction industry data published by Engineering News-Record (ENR). The study identifies (1) cross-correlations between market sectors; (2) the possible reasons for diversification by contractors; (3) diversification patterns by the contractors; and (4) differences in performance among the contractors classified by diversification strategy. These empirical findings may be of assistance to contractors in the development of their own diversification strategies.
- Subjects
UNITED States; CONTRACTORS; CONSTRUCTION industry; DIVERSIFICATION in industry; BUSINESS planning; RISK management in business; REVENUE; INDUSTRIALIZATION
- Publication
Canadian Journal of Civil Engineering, 2011, Vol 38, Issue 7, p800
- ISSN
0315-1468
- Publication type
Article
- DOI
10.1139/l11-056