Gabriela Chmelíková, Kristina Somerlíková
Methods for Risk Measurement of Start-Up Firms in the Conditions of Emerging Capital Markets
Číslo: 3/2018
Periodikum: Statistika
Klíčová slova: Risk measurement, start-up business, emerging capital markets, degree of operating leverage, degree of financial leverage
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Anotace:
The aim of this paper is to offer the know-how for quantifying risk, which may reflect the restrictions faced by
investors in the conditions of emerging capital markets when they start up a new company. The theoretically
suitable risk measurement techniques are subject to empirical testing with finding that methods on financial
basis outperform those on the market basis and that the level of risk of the respective companies is particularly
dependent on the combined level of operating and financial leverage. This result allowed for the construction
of a new risk-quantifying technique for investors with low capital diversification, zero entrepreneurial history
and access to capital market data with low information content.
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investors in the conditions of emerging capital markets when they start up a new company. The theoretically
suitable risk measurement techniques are subject to empirical testing with finding that methods on financial
basis outperform those on the market basis and that the level of risk of the respective companies is particularly
dependent on the combined level of operating and financial leverage. This result allowed for the construction
of a new risk-quantifying technique for investors with low capital diversification, zero entrepreneurial history
and access to capital market data with low information content.