Commodity exposures and risk management in the Swedish construction sector : A comparison between Skanska, NCC, Peab and JM

Today’s construction industry consists of fierce competition and low margins, resulting in companies focusing on cost risk awareness. The aim of this thesis was to investigate how construction companies manage their market risks, with a special focus on commodity risks. In addition, the thesis purpo...

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Bibliographic Details
Main Author: Lyckeberg, Sara
Format: Others
Language:English
Published: Uppsala universitet, Industriell teknik 2013
Subjects:
SEB
Online Access:http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-192613
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spelling ndltd-UPSALLA1-oai-DiVA.org-uu-1926132013-01-24T15:44:54ZCommodity exposures and risk management in the Swedish construction sector : A comparison between Skanska, NCC, Peab and JMengLyckeberg, SaraUppsala universitet, Industriell teknik2013commodityriskfinancial indexSEBconstruction sectorToday’s construction industry consists of fierce competition and low margins, resulting in companies focusing on cost risk awareness. The aim of this thesis was to investigate how construction companies manage their market risks, with a special focus on commodity risks. In addition, the thesis purpose was also to explore the composition of commodity exposures within a few selected construction companies. A financial index of commodity exposures was generated out of Statistiska Centralbyråns’ totala faktorprisindex for multi-residence housing projects. Furthermore, a fictional case was combined to test the risk management effect of the financial index, using Sweden’s four largest construction companies’ commodity exposures. In summary, the construction companies were all aware of their commodity exposures although most of them did not actively manage them or know their exposures extent. Moreover, financial risk management of commodities is not easy or straightforward, resulting in difficulties in choosing the right management tool. Therefore, this thesis created and illustrated how a financial index could be used as a way to stabilize the profitability in construction projects. Student thesisinfo:eu-repo/semantics/bachelorThesistexthttp://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-192613UPTEC STS, 1650-8319 ; 13004application/pdfinfo:eu-repo/semantics/openAccess
collection NDLTD
language English
format Others
sources NDLTD
topic commodity
risk
financial index
SEB
construction sector
spellingShingle commodity
risk
financial index
SEB
construction sector
Lyckeberg, Sara
Commodity exposures and risk management in the Swedish construction sector : A comparison between Skanska, NCC, Peab and JM
description Today’s construction industry consists of fierce competition and low margins, resulting in companies focusing on cost risk awareness. The aim of this thesis was to investigate how construction companies manage their market risks, with a special focus on commodity risks. In addition, the thesis purpose was also to explore the composition of commodity exposures within a few selected construction companies. A financial index of commodity exposures was generated out of Statistiska Centralbyråns’ totala faktorprisindex for multi-residence housing projects. Furthermore, a fictional case was combined to test the risk management effect of the financial index, using Sweden’s four largest construction companies’ commodity exposures. In summary, the construction companies were all aware of their commodity exposures although most of them did not actively manage them or know their exposures extent. Moreover, financial risk management of commodities is not easy or straightforward, resulting in difficulties in choosing the right management tool. Therefore, this thesis created and illustrated how a financial index could be used as a way to stabilize the profitability in construction projects.
author Lyckeberg, Sara
author_facet Lyckeberg, Sara
author_sort Lyckeberg, Sara
title Commodity exposures and risk management in the Swedish construction sector : A comparison between Skanska, NCC, Peab and JM
title_short Commodity exposures and risk management in the Swedish construction sector : A comparison between Skanska, NCC, Peab and JM
title_full Commodity exposures and risk management in the Swedish construction sector : A comparison between Skanska, NCC, Peab and JM
title_fullStr Commodity exposures and risk management in the Swedish construction sector : A comparison between Skanska, NCC, Peab and JM
title_full_unstemmed Commodity exposures and risk management in the Swedish construction sector : A comparison between Skanska, NCC, Peab and JM
title_sort commodity exposures and risk management in the swedish construction sector : a comparison between skanska, ncc, peab and jm
publisher Uppsala universitet, Industriell teknik
publishDate 2013
url http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-192613
work_keys_str_mv AT lyckebergsara commodityexposuresandriskmanagementintheswedishconstructionsectoracomparisonbetweenskanskanccpeabandjm
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