Feeds

SMEs get hit harder in a market crisis, say biz profs

Panicking money-men see big firms as safer

Beginner's guide to SSL certificates

SMEs, especially riskier R&D-led ones, get even harder than one would expect by market crises, according to a new analysis by biz professors.

"We found that during big market crashes, investors adjust their holdings towards bigger corporate stocks that they perceive as being safer, even after controlling for economic exposures," says David Berger, finance prof.

Berger and his colleague H J Turtle examined market data covering 20 years and eight large emerging crises. They found that SMEs in one country tended to suffer a market hit following a crisis overseas, even if their own national economy remained unhurt overall.

"Investors see big blue chip stocks as the safer ones, and small, R&D intensive stocks for example, as riskier," Berger said. "So the stock of a smaller domestic company could take a hit because of an international shock."

Berger and Turtle's full study will be published in the Global Finance Journal. It is available online in advance of press here.

“Because investors start dumping smaller stocks in favor of safer, larger ones, the irony is that larger multinational corporations potentially see positive benefits during international crises," comments Berger. ®

Intelligent flash storage arrays

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
How to simplify SSL certificate management
Simple steps to take control of SSL certificates across the enterprise, and recommendations centralizing certificate management throughout their lifecycle.