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Riskiness of the market position and its impact on beta coefficient values

dc.contributor.authorZinecker, Marek
dc.contributor.authorKonečný, Zdeněk
dc.date.accessioned2014-03-20T07:57:25Z
dc.date.available2014-03-20T07:57:25Z
dc.date.issued2013-12cs
dc.identifier.citationTrendy ekonomiky a managementu. 2013, VII, č. 17, s. 179-187. ISSN 1802-8527.cs
dc.identifier.issn1802-8527
dc.identifier.urihttp://hdl.handle.net/11012/30734
dc.description.abstractPurpose of the article: This study tackles the questions, whether the betas of companies, that are in a riskier market position, are higher, lower or approximately the same compared to companies in a less risky position and whether the values of beta of companies in riskier and in less risky positions are over 1, within the interval ⟨0; 1⟩, or negative. Methodology/methods: There are used secondary data from financial statements of selected companies acting in the Czech automotive industry from the period 2002–2010. The corporate- and market life cycle is identified according to the model by Reiners (2004) and the beta coefficient is calculated by an alternative way using the accounting earnings. Scientific aim: The research should answer the question, whether the betas of companies, that are in a riskier market position, are higher, lower or approximately the same compared to companies in a less risky position and whether the values of beta of companies in riskier and in less risky positions are over 1, within the interval ⟨0; 1⟩, or negative. Findings: The beta coefficient reaches by market drivers mostly values over 1 and by two other positions mostly the values within the interval ⟨0; 1⟩. Among market pioneers, beta of one company reaches an extreme value –22.89 and so the average value of beta for this position is much lower than for market drivers. According to the median value, the beta for market pioneers is lower than for market drivers, too. Only one company within the sample holds the position of market follower and its beta reaches the value 0.41. All companies are in market positions with a high level of risk in most periods. The positions with a low risk are held maximally in 3 periods, which is typical especially for companies with a value of beta over 1. Conclusions: From these findings about betas can be derived, that cost of equity, which is the expected return of owners, will be higher for market drivers than for market pioneers because of a higher risk. But there are some limits, deriving from characteristics of secondary (accounting) data.en
dc.formattextcs
dc.format.extent179-187cs
dc.format.mimetypeapplication/pdfen
dc.language.isocscs
dc.publisherVysoké učení technické v Brně, Fakulta podnikatelskács
dc.relation.ispartofTrendy ekonomiky a managementucs
dc.relation.urihttp://www.fbm.vutbr.cz/cs/fakulta/vedecky-casopis/specialni-cislo-17-rocnik-viics
dc.rights© Vysoké učení technické v Brně, Fakulta podnikatelskács
dc.subjectbeta coefficienten
dc.subjectcapital asset pricing modelen
dc.subjectcorporate life cycleen
dc.subjectmarket life cycleen
dc.subjectmarket positionsen
dc.subjectrisk levelen
dc.titleRizikovost tržní pozice a její vliv na hodnotu beta koeficientucs
dc.title.alternativeRiskiness of the market position and its impact on beta coefficient valuesen
eprints.affiliatedInstitution.facultyFakulta podnikatelskács
dc.coverage.issue17cs
dc.coverage.volumeVIIcs
dc.rights.accessopenAccessen
dc.type.driverarticleen
dc.type.statusPeer-revieweden
dc.type.versionpublishedVersionen


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