The Relationship Among Organizational Survival, Site Risk and Accidents in Construction Sector

17 Pages Posted: 17 Oct 2017

See all articles by José M. Carretero-Gómez

José M. Carretero-Gómez

University of the Balearic Islands - Faculty of Economics and Business

Francisco Forteza

University of the Balearic Islands - Facultat de Ciències Econòmiques i Empresarials

Date Written: October 16, 2017

Abstract

This paper examines the relationships among the site risk, the probability of having accidents, the accident rate itself and the probability of firm survival in construction industry. We first assess safety levels on site using CONSRAT. We have examined during 11 years (2000-2010) 502 construction sites of 272 Spanish companies in Mallorca. We built a panel data with these safety assessments, the accident rates from Safety Authorities and the event of firm survival or mortality from SABI database from Bureu van Dijk.

Our general hypotheses are that: 1) Risk on site has an effect on the probability of having and accident and also in the current accident rate of a company; and 2) that accident rate affects the probability of a company to survive in the sector. Using probit regression model with panel data, we explore which is the relationship among all those variables in order to test the hypotheses. The results can be useful to highlight the importance of defining policies to control accident rates effectively, since this may be determinant in the sustainability, competitiveness and growth of the construction sector in the economy of a region.

Keywords: Occupational risk, Occupational accidents, Firm survival, Construction Industry

JEL Classification: L25, L74, M10

Suggested Citation

Carretero-Gómez, José M. and Forteza, Francisco, The Relationship Among Organizational Survival, Site Risk and Accidents in Construction Sector (October 16, 2017). Available at SSRN: https://ssrn.com/abstract=3054119 or http://dx.doi.org/10.2139/ssrn.3054119

José M. Carretero-Gómez (Contact Author)

University of the Balearic Islands - Faculty of Economics and Business ( email )

Crtra. Valldemossa, km 7.5
G. M. Jovellanos building
Palma, Illles Balears 07122
Spain

Francisco Forteza

University of the Balearic Islands - Facultat de Ciències Econòmiques i Empresarials ( email )

Crta. de Valldemossa km 7, 5
07122 Palma
Spain

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