INTRODUCTIONStudies reveal that competition has affected business risk and return. Eugen F., and French, Kenneth R., (2004) also indicated in the three factor model that value and are significant components which can affect stock returns. They also mentioned that a stock's return not only depends on a market beta, but also on market capitahzation bata. The market bata is used in the three factor model, developed by Fama and French, which is the successor to the CAPM model by Sharpe, Treynor and Lintner. Pagano and Mao (2007) stated that an intermediated market can therefore remain viable in the face of competition from a possibly faster, non-intermediated market as long as the specialist can generate revenue for the above services that covers his/her costs associated with asymmetric information, order processing, and inventory management. As Luis E. Peirero (2010) pointed, the task of estimating cost of equity in emerging market is more difficult because of problems such as collecting data in short periods.Together with financial system development and the economic growth, throughout many recent years, Viet Nam hardware industry is considered as one of active economic sectors, which has some positive effects for the economy. Additionally, financial risk and reactions has become an issue after the global crisis 2007-2009 which has some certain impacts on the whole Viet Nam economy, and specifically, the Viet Nam hardware industry. Hence, this research paper analyzes market risk under a one factor model of these hsted firms during this period. The purpose of this study is to find out how much market risk for this industry in changing contexts of competitors. For the estimating of impacts of a one factor model· the size of competitor on beta for listed hardware industry companies in Viet Nam stock exchange, research issues will be mentioned as following:Issue 1: Whether the risk level of hardware industry firms under the different changing scenarios of the size of competitor increase or decrease so much.Issue 2: Whether the disperse distribution of beta values become large in the different changing scenarios of the size of competitor in the hardware industry.Therefore, this paperwork will explain not only the relationship between risk and competitor size, but also presents how much risk for the hardware industry in each competitor scenario. It finds out competition or competitor size definitely has certan effects on market risk of hsted hardware firms.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 will conclude with some pohcy suggestions. This paper also supports readers with references, exhibits and relevant web sources.LITERATURE REVIEWKim et all (2002) noted that the nature of competitive interaction in an industry is important in assessing the effect of corporate product strategies on shareholder value. Jimenez et all (2005) pointed As market power is the primary source of franchise value, reduced competition in banking markets has been seen as promoting banking stability.Umar (2011) found that firms which maintain good governance structures have leverage ratios that are higher (forty- seven percent) than those of firms with poor governance mechanisms per unit of profit. Daly and Hanh Phan (2013) investigated the competitive structure of the banking industries in five emerging Asian countries including Viet Nam and showed that the global financial crisis affected dramatically the competition of banking system in emerging Asian countries.Chen et all (2013) supported regulators' suspicions that over-reliance on short-term funding and insufficient collateral compounded the effects of dangerously high leverage and resulted in undercapitalization and excessive risk exposure for Lehman Brothers. …
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