Mortality of construction companies based on density dependence

Based on the theory of density dependence, the factors and their effect on the mortality of the construction companies were identified. Taking the Jiangsu Province (1989-2007) as a practical case, a company-year data structure was established and the Cox proportional hazard model was used to analyze the mortality process. It is concluded that the construction industry level evolution plays an important role on exit rate of construction companies, however, this effect does not conform to density dependence as expected. The effect raises as the density expands, and this process is affected by the organizational age. Besides, organizational size and macro environment also act on mortality.