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The Future Risk of Internet Companies: Is There a Medium-Term Convergence?

  • Arnon Nilson Cavaeiro
  • Herick Fernando Moralles
  • Naijela Janaina Costa SilveiraEmail author
  • Diogo Ferraz
  • Daisy Aparecida do Nascimento Rebelatto
Conference paper
Part of the Springer Proceedings in Mathematics & Statistics book series (PROMS, volume 280)

Abstract

After the fact of the Internet Bubble, the technology companies, especially the Internet companies, were characterized as a sector of greater risk when compared to the other consolidated sectors. Thus, the present study aims to analyze whether the market risk of companies in the internet sector is still higher than companies in consolidated sectors. For this comparison, the Value-at-Risk (VaR) risk management method was used, which summarizes, in a single number, the worst expected return within certain confidence intervals and time. This methodology was applied to two groups: internet companies, traded in NADASQ, and companies in consolidated sectors, such as consumer goods, manufacturing, financial services, among others, traded on the NYSE. Samples are divided between 2000–2007 and 2008–2014 periods to compare behavior over time. The final result suggests that Internet companies still had a higher market risk than firms in consolidated sectors, but this risk decreased substantially between the periods studied.

Keywords

Internet companies Value-at-risk Risk management 

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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Arnon Nilson Cavaeiro
    • 1
  • Herick Fernando Moralles
    • 2
  • Naijela Janaina Costa Silveira
    • 3
    Email author
  • Diogo Ferraz
    • 4
  • Daisy Aparecida do Nascimento Rebelatto
    • 5
  1. 1.Graduated in Production Engineering, Federal University of São Carlos – UFSCarSão CarlosBrazil
  2. 2.Federal University of São Carlos – UFSCarSão CarlosBrazil
  3. 3.Production Engineering at Federal University of São Carlos – UFSCarSão CarlosBrazil
  4. 4.Production Engineering at University of São Paulo – USPSão CarlosBrazil
  5. 5.Production Engineering Department at University of São Paulo – USPSão CarlosBrazil

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