Abstract

In emerging markets such as Vietnam with stock market development, enhancing risk management for big corporation such as banks is vital to survive. We developed our studies from analysis of bank stock price to bank beta CAPM and now is bank cost of equity. Therefore, we select a big bank in Vietnam (STB Sacombank) and one of this study’s purposes is to make Assessment of relation between cost of equity, beta capm and market risk premium in a case of sacombank Vietnam in 2 periods. Our research results tell that: As R, G and VNIdex have positive impact on COE in both periods (see table 11) whereas IM has negative impact on COE (cost of equity) we would suggest that reducing R and G slightly to reduce cost of equity and increasing IM. Finally, because exchange rate has negative impact on COE in both periods while trade balance has positive impact on COE in both stages, we would recommend that increasing exchange rate and reducing trade balance to reduce COE. Therefore, our study can be expanded for other markets.

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