Munich Personal RePEc Archive

Risk and systemic risk perception in the telecommunications sector in Brazil: an investor perspective assessment.

Charlita de Freitas, Luciano and Euler de Morais, Leonardo and Manuel Baigorri, Carlos (2017): Risk and systemic risk perception in the telecommunications sector in Brazil: an investor perspective assessment.

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Abstract

This article approaches the risk perception towards the Brazilian telecommunications sector and how it might affect the flow of data driven investment in the country. Empirical evaluations are carried out with risk assessment metrics, Value at Risk (VaR) and Conditional Value at Risk (CoVaR), for a sample of telecommunications companies. Such approach is complemented by a descriptive review of the sector´s potential sources of risk and contagion channels. Results present own risk for each company in the sample and their individual contribution to the systemic risk in the sector. Besides, findings suggest that systemic risk perception might play an important role on investors´ decision to invest in the telecommunications sector in Brazil. Final remarks include notes on the potential benefits of adopting risk metrics as a tool to improve governance in the sector.

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