Construction Industry Multiple Regression Analysis

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1.0 CHAPTER DESCRIPTION Construction industry plays a main role in the development and enhancing economic sector and the development of the country. According to Narvon (2005), construction is one of the largest industries that contribute around 10% of the Gross National Product (GNP) in industrial countries. Construction industry has complexity in its nature because it is participated by a large number of parties such as clients, contractors, consultants, stakeholders, shareholders and others. Because of that the performance of the construction industry is affected by national economies (Narvon, 2005). Even though the construction industry has involves a lot in the expansion of the country but it’s not a friendly activities because a lot of problem will be exist if the progress and development of this industry are not well planned by the project manager. Shen (2002) has said that, …show more content…

There has been very limited number of literatures which focus on the factors that affect the firm performances in particular to Malaysia. This study focuses whether changes in net profit margin (NPM), debt ratio (DR), quick ratio (QR) and operating margin (OPM) would give an impact towards the firm performance which it is focus on the company in the construction industry. I wish to investigate the correlation between the variables with return of equity (ROE) as an indicator to measure the performance of firms in Malaysia construction industry. Besides that, this research aim is to identify whether there are any significant effects of the other factors on the performance of firm beside net profit margin (NPM), debt ratio (DR), quick ratio (QR) and operating margin (OPM). So from that, we can know how to conduct the companies in a better way and decide the strategies to make sure the firms are always in good

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