The next two years is a make or break period for companies, and the way managers' respond to the downturn will determine winners and losers for the next decade, a Deloitte study has predicted.

Company performance is far more variable during recessions. The study analysed the extent to which FTSE 100 companies annualised shareholder returns were spread around the average. Variability was as high as 27% during a recession but only 8% during an economic boom.

During the recession in the early 2000s, the variance of returns doubled from 14% in the 10 years leading up to the recession to 29% during the recession.

The study concluded that the spread of returns was so wide during recessions is reinforced by decisions taken by managers during difficult periods. Managers that focussed on securing financing, managing cash and controlling costs were able to effectively shepherd their organisations out of danger.