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

Abstract

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.