A Three Variable Model on the Risk Level of Viet Nam Hardware Industry during and after the Global Crisis

Huy, Dinh Tran Ngoc and Thanh, Nguyen Thi Phuong and Trang, Phan Thu and Dat, Pham Minh (2020) A Three Variable Model on the Risk Level of Viet Nam Hardware Industry during and after the Global Crisis. In: Current Strategies in Economics and Management Vol. 2. B P International, pp. 103-120. ISBN 978-93-90149-06-3

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Abstract

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.

Item Type: Book Section
Subjects: Article Paper Librarian > Social Sciences and Humanities
Depositing User: Unnamed user with email support@article.paperlibrarian.com
Date Deposited: 16 Jan 2024 05:05
Last Modified: 16 Jan 2024 05:05
URI: http://editor.journal7sub.com/id/eprint/2368

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