Evaluation of Systematic Risk of Viet Nam Construction MaterialIndustry During the Pre-Low Inflation Period 2012-2014

Abstract

The construction materialindustry is one of the most rapidly growing sectors, with many achievements both in Vietnam and in Asia. In recent years, its rapid growth has produced revenues from business activities. One of the key objectives of thispaper is to assess market risk volatility in construction material businesses in the 2012-2014 pre-low inflation period. Our first findings are to be found that beta values in general (< 1) for most of our constructionmaterialcompanies are appropriate when we apply quantitative, statistical and analytical methods to evaluate the asset beta and beta CAPM of 20 listed Viet Nam construction materialcompanies.However, we analyze the market risk volatility, determined byasset and equitybeta var, during the post-low inflation period in thissector and compare results in two circumstances: risk fluctuation in pre-law inflation time 2012-14is lower than that in post-low inflation period 2015-2017.Finally, if we observe in2 periods, BetaCAPM or equity beta mean goes up in case post-low inflation period. At last, policies in risk management and governance are suggested in the conclusion based on the research results and findings. In the post-low inflation environment, we alert that Beta fluctuations could bea little higher.JEL classification numbers:G00, G390, C83