The Risk Level of Viet Nam Banking Industry Under Impacts of a Three Variable Model During and After The Global Crisis
Dinh Tran Ngoc Huy

Over recent years, software 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 well-established banking 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 banking industry as it becomes necessary. First, by using quantitative and analytical methods to estimate asset and equity beta of total 9 listed companies in Viet Nam banking 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 the largest dispersion of risk measured by equity beta var of 0,232 when Financial leverage up 30%, tax rate up 28% and smaller size competitors chosen. 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 financial leverage down 20% and tax rate up 28% and current size competitors (measured by equity beta var of 0,001). Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.

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