Why Do Smaller Companies Receive Higher Valuations for New Initiatives?
Exchanges9 Touko 2019

Why Do Smaller Companies Receive Higher Valuations for New Initiatives?

In this episode, Steve Strongin of Goldman Sachs Research discusses a new report from Goldman Sachs' Global Markets Institute, titled "What the Market Pays For." One of the main findings is that equity investors tend to pay for persistence or what is sometimes called "visibility." Strongin also discusses why large corporations often feel that they aren't rewarded for innovation the way small firms are. The reason for this, Strongin explains, is how the market perceives the "deep pocket risk" involved. Investors worry that large firms may overspend on failing projects because they have the resources to do so. Smaller companies, however, don't have as much money to be able to do the same. Strongin also discusses how corporate reporting can be managed to improve firms' valuations. This podcast was recorded on May 1, 2019.. All price references and market forecasts correspond to the date of this recording. This podcast should not be copied, distributed, published or reproduced, in whole or in part. The information contained in this podcast does not constitute research or a recommendation from any Goldman Sachs entity to the listener. Neither Goldman Sachs nor any of its affiliates makes any representation or warranty, as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefor (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed. The views expressed in this podcast are not necessarily those of Goldman Sachs, and Goldman Sachs is not providing any financial, economic, legal, accounting or tax advice or recommendations in this podcast. In addition, the receipt of this podcast by any listener is not to be taken as constituting the giving of investment advice by Goldman Sachs to that listener, nor to constitute such person a client of any Goldman Sachs entity. Copyright 2019 Goldman Sachs & Co. LLC. All rights reserved. Learn more about your ad choices. Visit megaphone.fm/adchoices

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‘Bidenomics’: Evolution or Revolution?

‘Bidenomics’: Evolution or Revolution?

Does President Biden’s economic agenda represent a new progressive era in the U.S.? Goldman Sachs Research’s Allison Nathan discusses how big of a shift in U.S. economic policy Bidenomics truly represents and the implications for the economy with David Brady, professor at the Stanford Graduate School of Business; Jason Furman, professor at the Harvard Kennedy School; and Dean Baker, co-founder of the Center for Economic Policy Research.  Learn more about your ad choices. Visit megaphone.fm/adchoices

6 Heinä 202130min

The Global Chip Shortage: Impact, Outlook and Recovery

The Global Chip Shortage: Impact, Outlook and Recovery

Goldman Sachs Research’s Toshiya Hari, Kota Yuzawa and Rod Hall discuss the impact of the global semiconductor chip shortage across industries and supply chains.   Learn more about your ad choices. Visit megaphone.fm/adchoices

29 Kesä 202119min

The European Recovery: Here to Stay?

The European Recovery: Here to Stay?

The economic outlook for Europe appears to be brightening, but how sustainable is the recovery? Goldman Sachs’ Allison Nathan speaks with Jari Stehn, chief European economist for Goldman Sachs Research, and Richard Privorotsky, manager of European Cash Equities trading in the Global Markets Group, on the prospects for the region’s long-term recovery and how the markets—and investors—are positioned. Learn more about your ad choices. Visit megaphone.fm/adchoices

22 Kesä 202124min

From Crisis to Confidence: How Women Entrepreneurs Fared During the Pandemic

From Crisis to Confidence: How Women Entrepreneurs Fared During the Pandemic

How did women entrepreneurs fare during the pandemic? Goldman Sachs’ Asahi Pompey, Global Head of Corporate Engagement, and Candice Tse, U.S. Head of Market Strategy in Goldman Sachs Asset Management’s Strategic Advisory Solutions team, discuss the findings from a new report on this topic in Exchanges at Goldman Sachs.  Learn more about your ad choices. Visit megaphone.fm/adchoices

15 Kesä 202129min

Industrials Influx: What’s Fueling Record Activity Levels?

Industrials Influx: What’s Fueling Record Activity Levels?

The industrials sector—historically comprised of mature businesses without as much need for near-term growth capital—has seen robust IPO activity so far in 2021, with no signs of slowing down. Matt McClure, co-head of the Investment Banking Division’s global industrials group, explains what’s driving the activity and how clients are thinking about accessing the public markets. Learn more about your ad choices. Visit megaphone.fm/adchoices

8 Kesä 202116min

Crypto: A New Asset Class?

Crypto: A New Asset Class?

Should cryptocurrencies be considered an institutional asset class? That’s the question Goldman Sachs’ Allison Nathan explores on this episode of Exchanges at Goldman Sachs in conversations with Galaxy Digital’s Michael Novogratz, NYU’s Nouriel Roubini and Goldman Sachs’ Mathew McDermott.  Learn more about your ad choices. Visit megaphone.fm/adchoices

1 Kesä 202126min

What’s Ahead for Inflation?

What’s Ahead for Inflation?

Amid rising concerns over inflation, David Mericle of Goldman Sachs Research explains the big-picture risks to the economy, while Josh Schiffrin from the Global Markets Division looks at market implications on this episode of Exchanges at Goldman Sachs.  Learn more about your ad choices. Visit megaphone.fm/adchoices

25 Touko 202121min

Copper is the New Oil

Copper is the New Oil

A surge in green capex—combined with the lack of copper mining projects—will lead to a multi-year bull market in copper, explains Goldman Sachs Research’s Nick Snowdon.  Learn more about your ad choices. Visit megaphone.fm/adchoices

18 Touko 202118min

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