Where Beta is going – case of Viet Nam hotel, airlines and tourism company groups after the low inflation period

Tran Thi Bich Hang,Do Hong Nhung,Pham Minh Dat,Nguyen Manh Hung,Duong Thi Hong Nhung,Dinh Tran Ngoc Huy

doi:10.9770/jesi.2020.7.3(55)

Abstract

Tourism, airline, hotel are industries those can be affected much by environment and social risks. Vietnam hotel, entertainment, airline & tourism industries are growing fast and contributing much to the economic development and have been affected by inflation. This paper measures the volatility of market risk in Viet Nam Hotel, entertainment, airline & tourism industries after this low inflation environment (2015-2017). The main reason is the necessary role of these financial companies and their system in Vietnam in the economic development and growth in recent years always go with risk potential and risk control policies. This research paper aims to figure out how much increase or decrease in the market risk of Vietnam Hotel, entertainment, airline & tourism firms during the post-low inflation environment 2015-2017. First, by using quantitative combined with comparative data analysis method, we find out the risk level measured by equity beta mean values in the Hotel, entertainment, airline & tourism industries are acceptable, as they are lower than (

Highlights

Over many recent years (2006 until now), Viet Nam Hotel, entertainment, airline & tourism market are evaluated as one of active financial markets, which has certain positive effect for the economy and become one of vital players in the financial system of the nation.The Vietnam economy experienced acceptable inflation during a long time (2009-2014) and it reached a low inflation rate of 0.6% in the year 2015
We summarize the data in the above chart 1 as the analysis follows: For the airline and tourism industry, different from hotel industry, the market risk volatility has been just slightly decreasing during the post-low inflation environment (2015-17) as shown by equity beta var in the above chart, whereas the risk level decreased much
We summarize the data in the above chart as the analysis follows: For the hotel industry, the market risk level has been reduced during the post-low inflation environment (2015-17) as shown in the above chart, while the risk fluctuation has decreased much

Summary

Introduction

Over many recent years (2006 until now), Viet Nam Hotel, entertainment, airline & tourism market are evaluated as one of active financial markets, which has certain positive effect for the economy and become one of vital players in the financial system of the nation.The Vietnam economy experienced acceptable inflation (exhibit 1) during a long time (2009-2014) and it reached a low inflation rate of 0.6% in the year 2015. High inflation may harm the whole economy in general and Hotel, entertainment, airline & tourism sectors in specific whereas low inflation may stimulate the local economy by reducing borrowing interest rates. This is why we would like to see, what the real scenario of market risk level of financial sector in Vietnam is during the post-low inflation environment, i.e. 2015-2017 years. The paper is organized as follows: after the introduction it is the research issues, literature review, conceptual theories and methodology.

Objectives

Methods

Results

Discussion

Conclusion