Abstract
This paper defends the wisdom of not considering the Digital Economy to be one homogeneous sector. Our hypothesis is that it is best to consider it the result of adding four different subsectors. We test whether indeed the economic and financial performance of a portfolio of listed companies in each of the four subsectors presents relevant differences. We use the value at risk measure to estimate market risk of the four subsectors of the digital economy. The riskiest subsector is Mobile/Internet Contents & Services followed by SW&IT Services and Application Software. On the contrary, the Telecom sector is by far the safest one. These results support the hypothesis that the Digital Economy is not a homogeneous sector.
Highlights
DESPITE the importance of the Digital Economy, people often have two misconceptions when talking about it
The highest expected losses are observed in the Mobile/Internet Contents & Services (-5.3%)
We can conclude that whatever measure we use to evaluate risk, variance and/or value at risk, we find important differences between the four subsectors of the digital economy
Summary
DESPITE the importance of the Digital Economy, people often have two misconceptions when talking about it. The Digital Economy covers various subsectors that have quite different characteristics. In this regard, this article has two objectives: first, justify the different sectors that make up the digital economy from a technological and economic perspective; and second, find an objective criterion that allows us to verify the different nature of the subsectors mentioned. This article has two objectives: first, justify the different sectors that make up the digital economy from a technological and economic perspective; and second, find an objective criterion that allows us to verify the different nature of the subsectors mentioned To achieve these objectives, this paper has been structured as follows.
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