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Risk assessment for micro companies belonging to selected economic branches of the professional, scientific and technical services sector in Mexico through the Beta coefficient

Author

Listed:
  • Flores Sánchez, Edgar Mauricio
  • Rodríguez Batres, Axel
  • Varela Espidio, Joaquín Bernardo

Abstract

Companies are the economic units that generate economic growth for any country or region by offering the goods and services demanded by society at the same time that they generate a large number and variety of jobs, specifically the micro companies belonging to the sector of the professional, technical and scientific services in Mexico contribute with a significant number of companies and employment generated. Despite this, micro enterprises do not have optimal access to the financing they need to continue growing, mainly due to poor risk management. The valuation of companies is a discipline that offers various methods to determine the risk of an asset, highlighting the Capital Asset Pricing Model which requires the estimation of Beta risk coefficients and which has been applied in a general way to large companies belonging to developed countries. The present work is focused on developing an own index of micro companies in Mexico and determining the respective risk coefficients for nine economic branches of the mentioned subsector. The final results made it possible to identify the nine Beta coefficients for the chosen branches of the professional, scientific and technical services sector, in such a way that said risk indicators can be used to calculate the value and risk associated with the micro-companies of said branches of the economy in Mexico; providing a valuation alternative to improve access to financing.

Suggested Citation

  • Flores Sánchez, Edgar Mauricio & Rodríguez Batres, Axel & Varela Espidio, Joaquín Bernardo, 2021. "Risk assessment for micro companies belonging to selected economic branches of the professional, scientific and technical services sector in Mexico through the Beta coefficient," MPRA Paper 105727, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:105727
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    References listed on IDEAS

    as
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    3. Blume, Marshall E, 1975. "Betas and Their Regression Tendencies," Journal of Finance, American Finance Association, vol. 30(3), pages 785-795, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    valuation; risk betas; micro companies; professional; technical and scientific services.;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services

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