THE SENSITIVITY OF MARKET RISK TO THE GROWTH OF STARTUPS
DOI:
https://doi.org/10.34629/ric-ijar/1982-3967.2023.v17.e-023003Keywords:
Market Risk, Growth, StartupsAbstract
The objective of the study is to relate market risk to the growth of startups. The selection criteria analyzed were startups that publish their financial reports publicly, with data extracted from Economática. The study analyzed the period 2015-2022, since the process of developing these startups on the stock exchange is somewhat recent. Data was collected from the companies selected using Bovespa's economic sector classification. The sample consisted of 104 startups/year observations referring to 14 startups that disclosed financial information in the period determined in the research. The results showed that keeping other variables constant, an increase in return on assets is correlated with a decrease in Beta (market risk). This finding suggests the possibility that startups with solid financial performance, exemplified by a high return on assets, may be related to a lower level of market risk. In addition, the capital investment variable (CI) indicates that, holding other variables constant, an increase in capital investment is associated with a reduction in Beta. This result suggests that startups that make more substantial investments in capital could potentially be linked to a lower level of market risk.
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