Vol 5 No 6 (2019): IJRDO - Journal of Business management | ISSN: 2455-6661
Articles

Beta of Viet Nam Stock Investment Industry Under Leverage Impact During and After The Global Crisis 2007-2011

Dinh Tran Ngoc Huy
Binh Duong university Vietnam – GSIM
Bio
Published July 2, 2019
Keywords
  • equity beta,
  • financial structure,
  • financial crisis,
  • risk,
  • external financing,
  • stock investment industry
  • ...More
    Less
How to Cite
Huy, D. T. N. (2019). Beta of Viet Nam Stock Investment Industry Under Leverage Impact During and After The Global Crisis 2007-2011. IJRDO - Journal of Business Management (ISSN: 2455-6661), 5(6), 19-32. Retrieved from https://ijrdo.org/index.php/bm/article/view/2963

Abstract

This paper estimates the impacts of external financing on market risk for the listed firms in the Viet nam non-banking stock investment industry, esp. after the financial crisis 2007-2009.

First, by using quantitative and analytical methods to estimate asset and equity beta of total 10 listed companies in Viet Nam non-banking stock investment industry with a proper traditional model, we found out that the beta values, in general, for many institutions are acceptable.

Second, under 3 different scenarios of changing leverage (in 2011 financial reports, 30% up and 20% down), we recognized that the risk level, measured by equity and asset beta mean, decreases when leverage increases to 30% and vice versa.

Third, by changing leverage in 3 scenarios, we recognized the dispersion of risk level increases (measured by equity beta var) if the leverage increases up to 30%.

Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.

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