Construction
material industry 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 this
paper 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 construction material
companies are appropriate when we apply quantitative, statistical and
analytical methods to evaluate the asset beta and beta CAPM of 20 listed Viet
Nam construction material companies. However, we analyze the market risk
volatility, determined by asset and equity beta var, during the post-low inflation period in this
sector and compare results in two circumstances: risk fluctuation in pre-low
inflation time 2012-14 is lower than that in post-low inflation period
2015-2017. Finally, if we observe in 2 periods, Beta CAPM 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 be little higher.
Author(s) Details
Dinh Tran Ngoc Huy
Banking University Ho Chi Minh City, Vietnam and Graduate School of
International Management, International University of Japan, Niigata, Japan.
Pham Tun Anh
Thuongmai University, Ha Noi, Vietnam.
View Book :- http://bp.bookpi.org/index.php/bpi/catalog/book/191
The
Vietnam economy has obtained lots of achievements after the financial crisis
2007-2011, until it reached a low inflation rate of 0.6% in 2015. Vietnam Water
& Electric power Company group are growing and contributing much to the
economic development and has been affected by inflation. High and increasing
inflation might reduce values of Water& Electric power Company group
contracts. This paper measures the volatility of market risk in Viet Nam
Water& Electric power Company group after this period (2015-2017) and
recommends policies for sutainable water treatment and development. The main
reason is the necessary role of the of Water& Electric power Company group
system in Vietnam in the economic development and growth in recent years always
go with risk potential and risk control policies. Hence, this research paper aims to figure out
how much increase or decrease in the market risk of Vietnam Water& Electric
power Company group firms during the post-low inflation environment 20152017.
First, by using quantitative combined with comparative data analysis method, we
find out the risk level measured by equity beta mean in the water and electric
power industry is acceptable, as it is lower than (<) 1. Then, one of its
major findings is the comparison between risk level of stock investment
industry compared to those of Water Company group in the post-low inflation
time 2015-2017. In fact, the research findings show us market risk level of
water and electric power group during the post-low inflation time is lower
(equity beta mean = 0.412). Then, another major finding is the comparison
between risk level of electric power industry in the post-low inflation time
2015-2017 compared to those in the crisis 2007-09. In fact, the research
findings show us market risk level of electric power group during the post-low
inflation time is higher. Finally, this paper provides some ideas that could
provide companies and government more evidence in establishing their policies
in governance. This is the complex task but the research results shows us
warning that the market risk need to be controlled better during the post-low
inflation period 20152017. And our conclusion part will recommends some
policies and plans to deal with it. Basically, we need to have a better
integration management of water cross the country, identify challenges in water
treatment and resolve them.
Author(s) Details
Dinh Tran Ngoc Huy
Banking University, Ho Chi Minh City, Viet Nam and Graduate School of
International Management, International University of Japan, Niigata, Japan.
Nguyen Thi Phuong Thanh
Thai Nguyen University of Information Technology and Communications, Thai
Nguyen, Viet Nam.
Pham Tuan
Anh Thuongmai University, Hanoi, Viet Nam.
View Book :- http://bp.bookpi.org/index.php/bpi/catalog/book/185
Over
recent years, hardware industry in Viet Nam has reached a lot of achievements.
Under the volatility of stock price, and changes in macro factors such as
inflation and interest rates, the wellestablished hardware market in Viet Nam
has many efforts to recover and grow from the crisis 2008. This study analyzes
the impacts of 3 factors: Competitor size, tax rate policy and leverage on
market risk for the listed firms in the hardware industry as it becomes
necessary. First, by using quantitative
and analytical methods to estimate asset and equity beta of total 22 listed companies
in Viet Nam hardware 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 the largest dispersion in equity beta value (0,2), if
leverage up to 30% and doubling size competitors. Third, by changing tax rates
in 3 scenarios (25%, 20% and 28%), this study identified that the risk
dispersion level in this sample study could be minimized in case the competitor
size doubling, tax rate up to 28% and financial leverage down to 20% (measured
by asset beta var of 0,081). Finally, this paper provides some outcomes that
could provide companies and government more evidence in establishing their
policies in governance.
Author(s) Details
Dinh Tran Ngoc Huy
Banking University, Ho Chi Minh City, Vietnam and Graduate School of
International Management, International University of Japan, Niigata, Japan.
Nguyen Thi Phuong Thanh
Thai Nguyen University of Information Technology and Communications, Vietnam.
View Book :- http://bp.bookpi.org/index.php/bpi/catalog/book/185
The
Viet Nam economy and especially, the stock exchange has been influenced by the
global crisis during the period 2007-2011. For specific industries, such as
consumer good and wholesale/retail industries, the risk re-analysis and
estimation for the listed firms in these industries become necessary. First, by using quantitative and analytical
methods to estimate asset and equity beta of three (3) groups of sub-trading
listed companies in Viet Nam material, consumer good, wholesale and retail
industries with a proper traditional model, we found out that the beta values,
in general, for most companies are acceptable, excluding a few cases. There are
72% of listed firms with lower risk, among total 229 firms, whose beta values
lower than (<) 1. Second, through
comparison of beta values among three (3) above industries, we recognized there
are still 26% of total listed firms in the above group companies with beta
values higher than (>) 1 and have stock returns fluctuating more than the
market index. Finally, this paper generates some outcomes that could provides
both internal and external investors, financial institutions, companies and
government more evidence in establishing their policies in investments and in
governance.
Author(s) Details
Le Thi Viet Nga
Thuongmai University, Hanoi, Vietnam
Dinh Tran Ngoc Huy
Banking University, HCMC – GSIM, International University of Japan, Japan
and The National Economics University, Hanoi, Vietnam.
Ly Thu Trang
Thai Nguyen University of Information Technology and Communications, Thai Nguyen,
Vietnam.
View Book :- http://bp.bookpi.org/index.php/bpi/catalog/book/174
