Report
Patrick Artus

The weight of intermediate-sized companies and the weight of industry

We have an estimate of the number of intermediate-sized companies (mid-caps, more than 250 and less than 5,000 employees, revenues of more than €50 million and less than €1.5 billion) for some European countries (France, Germany, United Kingdom, Italy). It is interesting to note that a high number of mid-caps corresponds to a high weight of industry in GDP. Is there a rational explanation for this? One might think that mid-caps: Have longer-term horizons and therefore use a lower discount rate (RoE), which promotes industrial investment and discourages offshoring; Are more attached to their regions than large companies, and therefore more reluctant to destroy jobs and offshore .
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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