Among the 14 evaluation criteria, the indicators DOL, beta coefficient
, and O6 have the smaller-the-better characteristic, and the remaining indicators have the larger-the-better characteristic.
As discussed earlier, the beta coefficient
for early stage start-ups cannot be derived from past values or by comparison with companies of a peer group.
8 Notice, however, that the use of weekly data for calculation of beta-convergence gives us the advantage of minimising noise (holiday effects and time zone differences playing a greater role on daily frequency) and at the same time we can still discriminate between countries; in other words the beta coefficients
do not equal unity in all cases.
Farid Lian, AIC Senior Vice President for Research and Business Development commented "perhaps the main achievement of AIC research team, has been the development of a fully automated system which, when activated, would autonomously update itself to capture developments in total performance constituents, detect and indicate the listing of new shares, and recalibrate itself accordingly, so as to return the updated Beta Coefficient
for each of the market's twelve sectors at any point in time.
Finally, the volatility of regional chemical production and global chemical production was compared using beta coefficients
Similar to the Treynor measure, the Jensen's alpha performance metric utilizes the beta coefficient
in accounting for risk in the assessment of returns outperformance.
While the significance of the book value coefficients is as previously predicted by prospect theory, the Beta coefficient
is markedly so.
Calculating the beta coefficient
for companies of various degrees of capitalization, Annin noticed that the beta coefficient
of small companies fluctuates much more over time than it does for large companies (Annin 1997).
Standardized beta coefficients
are useful when the independent variables representing the model are of different units as in this case.
si] = firm i's beta coefficient
for the size factor,
We notice however, that the beta coefficient
of the trend is also very high, which means that technology and other factors are also keeping pace with the high risk, hence dampening the full effects of the exposure.
Table 1 Beta Coefficients
and t-Values Among Predictor and Outcome Variables Performance Beta Coefficient
t-Value Performance Cue Athlete Ability .