Asset Beta Mean Research Articles

The Risk Level of Viet Nam Software Industry Under Financial Leverage During and After the Global Crisis 2009-2011

After the financial crisis 2007-2009, this research paper evaluates the impacts of external financing on market risk for the listed firms in the Viet nam software industry. First, by using quantitative and analytical methods to estimate asset and equity beta of total 6 listed companies in Viet Nam software 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 it increases if leverage decreases down to 20%. Third, by changing leverage in 3 scenarios, we recognized the dispersion of risk level, measured by equity and asset beta var, increases slightly if the leverage increases to 30%. Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.

The Risk Level of Viet Nam Medicine Industry Under Financial Leverage During and after the Global Crisis 2009-2011

After the financial crisis 2007-2009, this paper evaluates the impacts of external financing on market risk for the listed firms in the Viet nam medicine industry. First, by using quantitative and analytical methods to estimate asset and equity beta of total 8 listed companies in Viet Nam medicine 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 (0,176) when leverage increases to 30% and it increases (0,212) if leverage decreases down to 20%. Third, by changing leverage in 3 scenarios, we recognized the dispersion of risk level, measured by equity and asset beta var, increases if the leverage increases to 30%. But the asset beta var value is quite small, showing leverage efficiency. Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.

The Volatility of Market Risk in Viet Nam Listed Public Utilities Company Groups During and after the Financial Crisis 2007-2009

This study estimates market risk of total 45 listed companies in Viet Nam public utilities, natural gas and oil industry during the financial crisis period 2007-2009. Firstly, we found out in the research sample that there are 82% of firms, of total listed firms, with beta values lower than ( ) 1, meaning having stock returns fluctuating more than the market benchmark. Thirdly, among three (3) groups, the systemic risk in the electric power industry is the smallest, shown by estimated values of equity and asset beta mean, and asset beta variance in this industry is also the smallest. Finally, this paper generates some analytical outcomes that enable companies and government to have more evidence in establishing their policies in investments and in governance

Tax Rates Effects on the Risk Level of Listed Viet Nam Medicine Firms During Global Economic Crisis 2007-2009

The emerging stock market in Viet Nam has been developed since 2006 and affected by the financial crisis 2007-2009. This study analyzes the impacts of tax policy on market risk for the listed firms in the real estate industry as it becomes necessary. First, by using quantitative and analytical methods to estimate asset and equity beta of total 45 listed companies in Viet Nam real estate 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 tax rates (20%, 25% and 28%), we recognized that there is not large disperse in equity beta values, estimated at 0.750, 0.762 and 0.769. Third, by changing tax rates in 3 scenarios (25%, 20% and 28%), we recognized both equity and asset beta mean values have positive relationship with the increasing levels of tax rate. Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.

The Risk Level of Viet Nam Tourism Industry Under Financial Leverage During and after the Global Crisis 2007-2011

ABSTRACTThis paper evaluates the impacts of external financing on market risk for the listed firms in the Viet nam tourism industry, esp. during and after the financial crisis 2007-2009. First of al, by using quantitative and analytical methods to estimate asset and equity beta of total 10 listed companies in Viet Nam tourism 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 decreases much more if leverage decreases down to 20%. Third, by changing leverage in 3 scenarios, we recognized the dispersion of risk level, measured by equity beta var of 0,767, increases if the leverage increases to 30% whereas decreases to 0,038 if leverage decreases to 20%. But the dispersion measured by asste beta var decreases to 0,473 (leverage up 30%), showing leverage eficiency. Finaly, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.Keywords: Equity Beta, Financial Structure, Financial Crisis, Risk, External Financing, Tourism IndustryINTRODUCTIONFinancial leverage has certain effects on the risk level of listed companies on stock exchange. Flifel (2012) stated today, the assumption of efficient capital markets is very controversial, especially in these times of crisis, and is challenged by research showing that the pricing was distorted by detection of long memory. Gabrijelcic et all (2013) find a significant negative effect of leverage on firm performance. And firms that had some foreign debt financing performed better than their counterparts.Measuring beta is a popular method used in many models such as the famous CAPM model. The Viet Nam tourism industry is selected for the research because until now there is no research published with the same scope and because Viet Nam tourism industry is considered as one of active economic sectors in local financial markets, which has some positive effects for the economy. The purpose of this study, therefore, to find out how much market risk for this industry in changing contexts of financial leverage.We mention some issues on the estimating of impacts of external financing on beta for listed tourism industry companies in Viet Nam stock exchange as following:Issue 1: Whether the risk level of tourism industry firms under the different changing scenarios of leverage increase or decrease so much.Issue 2: Whether the disperse distribution of beta values become large in the different changing scenarios of leverage estimated in the tourism industry.This paper is organized as follow. The research issues and literature review will be covered in next sessions 2 and 3, for a short summary. Then, methodology and conceptual theories are introduced in session 4 and 5. Session 6 describes the data in empirical analysis. Session 7 presents empirical results and findings. Next, session 8 covers the analytical results. Then, session 9 presents empirical results and session 10 presents analysis of risk. Lastly, session 11 shows discussion and session 12 will conclude with some policy suggestions. This paper also supports readers with references, exhibits and relevant web sources.THEORETICAL BACKGROUNDA. Conceptual theoriesThe impact of financial leverage on the economyFinancial development and economic growth are positively interrelated. The interaction between these two (2) fields can be considered as a circle, in which good financial development causes economic growth and vice versa. A sound and effective financial system has positive effect on the development and growth of the economy. Financial institutions and markets can enable corporations to solve liquidity needs and enhance long-term investments. …

To What Extent Changing Tax Policy and External Financing Influence the Risk Level of Viet Nam Natural Gas Industry During and after the Global Crisis

Over past few years, the global financial crisis shows certain influence on emerging financial markets including Viet nam. Therefore, this study chooses an analytical approach to give some systematic opinions on how much some certain determinants such as income tax and leverage, affect the level of market risk in listed medicine companies. First, it calculates equity and asset beta values in three (3) different scenarios of changing tax rates and changing the level of financial leverage. Second, under 3 different scenarios of changing tax rates (20%, 25% and 28%), we recognized that there is not large disperse in equity beta values, estimated at 0,714 for current leverage situation. Third, by changing tax rates in 3 scenarios (25%, 20% and 28%), we recognized both equity and asset beta mean values maintain the same values (0,682 and 0,414) with the current level of tax rate. Last but not least, this paper covers some ideas and policy suggestions. JEL classification numbers G00, G3, G30

The Measurement of Impacts of External Financing on The Risk Level of Viet Nam Construction Material Industry During and After The Global Crisis 2007-2011

This research paper aims to analyze the impacts of external financing on market risk for the listed firms in the Viet nam construction material industry, esp. after the financial crisis 2007-2009.
 First, by using quantitative and analytical methods to estimate asset and equity beta of total 57 listed companies in Viet Nam construction material 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 to 30%.
 Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.

The Measurement of Impacts of External Financing on The Risk Level of Viet Nam Construction Material Industry During and After The Global Crisis 2007-2011

This research paper aims to analyze the impacts of external financing on market risk for the listed firms in the Viet nam construction material industry, esp. after the financial crisis 2007-2009. First, by using quantitative and analytical methods to estimate asset and equity beta of total 57 listed companies in Viet Nam construction material 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 to 30%. Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.

Whether The Risk Level of Viet Nam Real Estate Firms under the Different Changing Tax Rates Increase or Decrease So Much?

Under the volatility of stock price, and changes in macro factors such as inflation and interest rates, the real estate market in Viet Nam has entered the recession stage after the year 2008 and after the bubbles in housing prices. This study analyzes the impacts of tax policy on market risk for the listed firms in the real estate industry as it becomes necessary. First, by using quantitative and analytical methods to estimate asset and equity beta of total 45 listed companies in Viet Nam real estate industry with a proper traditional model, we found out that the beta values, in general, for many companies are acceptable. Second. under 3 different scenarios of changing tax rates (20%, 25% and 28%), we recognized that there is not large disperse in equity beta values, estimated at 0,918, 0,927 and 0,934. Third, by changing tax rates in 3 scenarios (25%, 20% and 28%), we recognized both equity and asset beta mean values have positive relationship with the increasing level of tax rate. Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.

Whether Different Changing Tax Rates Cause the Risk Level of Viet Nam Construction Firms to Increase or Decrease so Much?

The emerging stock market in Viet Nam has been affected by the financial crisis 2007-2009. This study analyzes the impacts of tax policy on market risk for the listed firms in the construction industry as it becomes necessary. First, by using quantitative and analytical methods to estimate asset and equity beta of total 104 listed companies in Viet Nam construction industry with a proper traditional model, we found out that the beta values, in general, for many companies are acceptable. Second, under 3 different scenarios of changing tax rates (20%, 25% and 28%), we recognized that there is not large disperse in equity beta values, estimated at 1,008, 1,106 and 1,014.These values are higher than those of the listed VN real estate firms. Third, by changing tax rates in 3 scenarios (25%, 20% and 28%), we recognized both equity and asset beta mean values have positive relationship with the increasing levels of tax rate. Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.

Estimating beta of Viet Nam listed public utilities, natural gas and oil company groups during and after the financial crisis 2007-2011

There comes a need for analyzing riskiness of many industries in Viet Nam stock market during the financial crisis period 2007-2011. Among these industries, the Viet Nam public utilities, natural gas and oil industries, specifically, also has to re-evaluate the risk level. First, we found out in the research sample that there are 84% of firms, of total 45 listed firms, with beta values lower than ( ) 1, meaning having stock returns fluctuating more than the market index. Third, among three (3) groups, the systemic risk in the electric power industry is the smallest, and asset beta variance in the gas and oil industry is the smallest, shown by estimated values of equity and asset beta mean. Finally, this paper generates some analytical outcomes that enable companies and government to have more evidence in establishing their policies in investments and in governance.

Estimating Beta of Viet Nam Listed Public Utilities, Natural Gas and Oil Company Groups During and After the Financial Crisis 2007-2011

There comes a need for analyzing riskiness of many industries in Viet Nam stock market during the financial crisis period 2007-2011. Among these industries, the Viet Nam public utilities, natural gas and oil industries, specifically, also has to reevaluate the risk level. First, we found out in the research sample that there are 84% of firms, of total 45 listed firms, with beta values lower than ( ) 1, meaning having stock returns fluctuating more than the market index. Third, among three (3) groups, the systemic risk in the electric power industry is the smallest, and asset beta variance in the gas and oil industry is the smallest, shown by estimated values of equity and asset beta mean. Finally, this paper generates some analytical outcomes that enable companies and government to have more evidence in establishing their policies in investments and in governance.

The risk level of Vietnam non-banking investment and financial services industry under financial leverage during and after the global crisis 2007-2011

This paper estimates the impacts of external financing on market risk for the listed firms in the Viet nam non-banking financial services 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 Vietnam non-banking financial services 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 decreases down to 20%. Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.

The Risk Level of Viet Nam Medicine and Medical Equipment Industries Under Financial Leverage During and After the Global Crisis 2007-2011

Purpose- This research paper evaluates the impacts of external financing on market risk for the listed firms in the Vietnam medical industry as it becomes necessary, esp. after the financial crisis 2007-2009. Design/methodology/approach- First, by using quantitative and analytical methods to estimate asset and equity beta of total 10 listed companies in Viet Nam medical industry with a proper traditional model. Second, we used three scenarios. Finally, leverage changed in three scenarios. Findings- We found out that the beta values, in general, for many institutions are acceptable. 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 it increases in case leverage down to 20%. Third, by changing leverage in 3 scenarios, we recognized the dispersion of risk level, measured by equity beta var, increases if the leverage increases to 30%. Compared to the results of other industries, we see that asset beta var in here increases when leverage up to 30% as well as that in consumer good industry. Originality/value- Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance. Research Paper Reference to this paper should be made as follows: Huy, D.T.N. (2014). “The Risk Level of Viet Nam Medicine and Medical Equipment Industries Under Financial Leverage During and After The Global Crisis 2007-2009”, Journal of Entrepreneurship, Business and Economics, Vol. 2, No. 1, pp. 74–87.

Beta of Viet Nam Listed Hotel, Tourism and Entertainment Company Groups During and After the Financial Crisis 2007-2011

After the analysis of riskiness in some major industries in Viet Nam such as construction and consumer good industries, this paper aims to estimate and analyze the systemic risk on the tourism, hotel and entertainment industries in the Viet Nam economy, esp., for the listed companies, during the period 2007-2011which has been influenced by the global crisis. First, we found out in the research sample of total 22 listed firms, that there are 68% of firms with beta values lower than ( ) 1, meaning having stock returns fluctuating more than the market index. Third, among three (3) groups, the systemic risk in the hotel industry is the smallest, and that in the entertainment industry is the second smallest, shown by estimated values of equity and asset beta mean. Finally, this paper generates some analytical results that enable companies and government to have more evidence in establishing their policies in investments and in governance.

Changing Tax Rates Impacts on the Risk Level of Vietnam Construction Material Firms

The Viet Nam stock market has been affected by the financial crisis 2007-2009. This study analyzes the impacts of tax policy on market risk for the listed firms in the construction material industry as it becomes necessary. First, by using quantitative and analytical methods to estimate asset and equity beta of total 57 listed companies in Viet Nam construction material industry with a proper traditional model, we found out that the beta values, in general, for many companies are acceptable. Second, under 3 different scenarios of changing tax rates (20%, 25% and 28%), we recognized that there is not large disperse in equity beta values, estimated at 0,957, 1,011 and 0,961.These values are lower than those of the listed VN construction firms. Third, by changing tax rates in 3 scenarios (25%, 20% and 28%), we recognized equity /asset beta mean and asset beta var increase if tax rate increases from 20% to 25%, then decrease when tax rate goes up from 25% to 28%. Finally, this paper provides some outcomes

Changing Tax Rates Impacts on the Risk Level of Viet Nam Construction Material Firms

The Viet Nam stock market has been affected by the financial crisis 2007-2009. This study analyzes the impacts of tax policy on market risk for the listed firms in the construction material industry as it becomes necessary. First, by using quantitative and analytical methods to estimate asset and equity beta of total 57 listed companies in Viet Nam construction material industry with a proper traditional model, we found out that the beta values, in general, for many companies are acceptable. Second, under 3 different scenarios of changing tax rates (20%, 25% and 28%), we recognized that there is not large disperse in equity beta values, estimated at 0,957, 1,011 and 0,961.These values are lower than those of the listed VN construction firms. Third, by changing tax rates in 3 scenarios (25%, 20% and 28%), we recognized equity /asset beta mean and asset beta var increase if tax rate increases from 20% to 25%, then decrease when tax rate goes up from 25% to 28%. Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.

The Measurement of Impacts of External Financing on the Risk Level of Viet Nam Hotel and Entertainment Industry During and after the Global Crisis 2007-2011

AbstractThis paper estimates the impacts of external financing on market risk for the listed firms in the Vietnam hotel and entertainment industries, esp. after the financial crisis 2007-2009 first, by using quantitative and analytical methods to estimate asset and equity beta of total 12 listed companies in Vietnam hotel and entertainment industry with a proper traditional model. We found out that the beta values, in general, for many institutions are acceptable.Secondly 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 decreases down to 20%.Keywords: Equity beta, financial structure, financial crisis, risk, external financing, entertainment industry.IntroductionFinancial system development is positively related to the economic growth and Vietnam hotel and entertainment industry is considered as one of active economic sectors. The issues are:Issue 1 : Whether the risk level of hotel and entertainment firms under the different changing scenarios of leverage increase or decrease so much.Issue 2: Whether the dispersed distribution of beta values becomes large in the different changing scenarios of leverage estimated in the hotel and entertainment industry.Conceptual theoriesThe impact of financial leverage on the economy: A sound and effective financial system has positive effect on the development and growth of the economy. Financial institutions not only help businesses to reduce agency problems but also enable them to enhance liquidity capacity and long-term capital. Financial innovation also reduces the cost of diversification. In a specific industry such as consumer good industry, on the one hand, using leverage with a decrease or increase in certain periods could affect tax obligations, revenues, profit after tax, technology innovation, compensation and jobs of the industry.During and after financial crises such as the 2007-2009 crisis, there were concerns about the role of financial leverage of many countries in both developed and developing markets. On the one hand, lending programs and packages might support the business sectors. On the other hand, it might create more risks for the business and economy.MethodologyIn order to calculate systemic risk results and leverage impacts, we used the live data during the crisis period 2007-2011 from the stock exchange market in Viet Nam (HOSE and HNX and UPCOM). In this research, analytical research method is used, philosophical method is used and specially, leverage scenario analysis method is used. Analytical data is from the situation of listed hotel and entertainment firms in VN stock exchange and curent tax rate is 25%.Finally, we use the results to suggest policy for both these enterprises, relevant organizations and government.General Data AnalysisThe research sample has total 12 listed firms in the hotel and entertainment market with the live data from the stock exchange. First, we estimate equity beta values of these firms and use financial leverage to estimate asset beta values of them. Secondly, we change the leverage reported in F.S 2011 to increasing 30% and reducing 20% to see the sensitivity of beta values. We found out that in 3 cases, asset beta mean values are estimated at 0,262, 0,216 and 0,326 which are negatively correlated with the leverage. Also in 3 scenarios, we find out equity beta mean values (0,409, 0,362 and 0,462) are also negatively correlated with the leverage. Leverage degree changes definitely have certain effects on asset and equity beta values.DiscussionData used are from total 12 listed hotel and entertainment companies on VN stock exchange (HOSE and HNX mainly). …

The Measurement of Impacts of External Financing on the Risk Level of Viet Nam Consumer Good Industry During and After the Global Crisis 2007-2011

This research analyzes the impacts of external financing on market risk for the listed firms in the Viet nam consumer good industries as it becomes necessary, esp. after the financial crisis 2007-2009. First, by using quantitative and analytical methods to estimate asset and equity beta of total 121 listed companies in Viet Nam consumer good 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 if the leverage increases to 30%. Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.

The Measurement of Impacts of External Financing on the Risk Level of Viet Nam Electric Commercial Industry During and after the Global Crisis 2007-2011

This paper estimates the impacts of external financing on market risk for the listed firms in the Viet nam electric commercial industry, esp. after the financial crisis 2007-2009. First, by using quantitative and analytical methods to estimate asset and equity beta of total 18 listed companies in Viet Nam electric commercial 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 decreases down to 20%. Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.