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.

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IMPACTS OF EXTERNAL FINANCING ON THE RISK LEVEL OF VIET NAM NATURAL GAS AND OIL INDUSTRY DURING AND AFTER THE GLOBAL CRISIS 2007-2009

International Journal of Research -GRANTHAALAYAH ◽

10.29121/granthaalayah.v3.i9.2015.2945 ◽

2015 ◽

Vol 3 (9) ◽

pp. 49-62

Author(s):

Dinh Tran Ngoc Huy

Keyword(s):

Financial Crisis ◽

Natural Gas ◽

Analytical Methods ◽

Oil Industry ◽

Risk Level ◽

Viet Nam ◽

Traditional Model ◽

External Financing ◽

Financial Reports ◽

Listed Firms

This paper estimates the impacts of external financing on market risk for the listed firms in the Viet nam natural gas and oil industry, esp. after the financial crisis 2007-2009. First, by using quantitative and analytical methods to estimate asset and equity beta of total 15 listed companies in Viet Nam natural gas and oil 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 (0,231) when leverage increases to 30% and vice versa. Third, by changing leverage in 3 scenarios, we recognized the dispersion of risk level decreases (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.

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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

International Journal of Management Excellence ◽

10.17722/ijme.v1i3.41 ◽

2013 ◽

Vol 1 (3) ◽

pp. 60-74

Author(s):

Dinh Tran Ngoc Huy

Keyword(s):

Analytical Methods ◽

Construction Material ◽

Risk Level ◽

Viet Nam ◽

Traditional Model ◽

External Financing ◽

Material Industry ◽

Financial Reports ◽

Listed Firms ◽

Construction Material Industry

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.

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Using External Financing in a One Factor Model Measuring the Volatility of Market Risk of Vietnam's Banking Industry During and After the Global Crisis

Journal of Central Banking Theory and Practice ◽

10.2478/jcbtp-2019-0019 ◽

2019 ◽

Vol 8 (2) ◽

pp. 173-187

Author(s):

Dinh Tran Ngoc Huy

Keyword(s):

Banking Industry ◽

Factor Model ◽

Market Risk ◽

Risk Level ◽

Traditional Model ◽

External Financing ◽

Financial Reports ◽

Listed Firms ◽

The Government ◽

The Impact

Abstract This paper evaluates the impact of external financing on market risk for the listed firms in Vietnam`s banking industry, especially during and after the financial crisis 2009-2011. First of all, by using quantitative and analytical methods to estimate asset and equity beta of total 9 listed companies in Vietnam banking 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 increases 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, increases from 0,108 to 0,181 if the leverage increases to 30% whereas decreases to 0,073 if leverage decreases to 20%. But the dispersion measured by asset beta var decreases to 0,007 (leverage up 30%), showing leverage impact. Finally, this paper provides some outcomes that could provide companies and the government with more evidence in establishing their policies in governance.

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The Measurement of Impacts of Tax Rates on the Risk Level of Listed Viet Nam Banking Firms During 2009-2011

International Journal of Management Excellence ◽

10.17722/ijme.v2i1.80 ◽

2013 ◽

Vol 2 (1) ◽

pp. 83-92

Author(s):

Dinh Tran Ngoc Huy

Keyword(s):

Financial Crisis ◽

Analytical Methods ◽

Positive Relationship ◽

Banking Industry ◽

Mean Value ◽

Risk Level ◽

Viet Nam ◽

Traditional Model ◽

Tax Rates ◽

Listed Firms

The emerging stock market in Viet Nam has been developed since 2006 and affected by the financial crisis 2007-2009. This paperwork analyzes the impacts of tax policy on market risk for the listed firms in the banking industry as it becomes necessary. First of all, 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 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 0,109, 0,108 and 0,107. These values are low and acceptable. Third, by changing tax rates in 3 scenarios (25%, 20% and 28%), we recognized equity beta mean value has 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.

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The effects of IFRS adoption and firm size on audit fees in financial institutions in Ghana

Accounting Research Journal ◽

10.1108/arj-07-2017-0114 ◽

2019 ◽

Vol 32 (3) ◽

pp. 436-453

Author(s):

William Coffie ◽

Ibrahim Bedi

Keyword(s):

Financial Institutions ◽

Firm Size ◽

Financial Services ◽

Audit Fees ◽

Financial Services Industry ◽

Content Type ◽

Listed Firms ◽

Ifrs Adoption ◽

Services Industry ◽

The Cost

Purpose This study aims to investigate the effects of international financial reporting standards (IFRS) adoption and firm size on auditors’ fees determination in the Ghanaian financial industry. Design/methodology/approach The authors use the annual report of 52 listed and non-listed firms spanning from 2003 to 2014. Guided by the hypotheses, the authors conditioned audit fees on IFRS adoption and firm size and execute robust fixed effects panel regression. Findings The results show that IFRS adoption has a positive coefficient with audit fees suggesting that the adoption of IFRS, indeed, increases the audit fees paid by banks and insurance firms, as well as the industry as a whole. The results are consistent with the idea that IFRS adoption increases auditor efforts with respect to time and complex nature of some aspect of the standards. Again, as expected, the coefficient of size is positively and significantly related to audit fees. This indicates that the size of the auditee plays a vital role in determining audit fees. Research limitations/implications The study is limited by industry (i.e. the financial services industry) and geography (i.e. Ghana). The authors propose further research that will widely consider other sectors and countries to improve the current scanty literature in this area. Besides, theoretically, the study is limited to the lending credibility theory and feels compelled to reiterate the importance of considering alternative theoretical perspective(s) in future research. Practical implications This study is significant to practitioners as it demonstrates the importance of the determinants of the auditors’ fees. It helps auditors to apply the relevant charging formula when determining audit fees, while it helps managers to improve upon the quality of reporting to control audit bill and forecasting their audit expenditure. Originality/value The results of the study extend the literature on the cost side of IFRS adoption by investigating the financial services industry and non-listed firms in a new context, i.e. a developing country where this research is uncharted. The existing studies based their analysis on either cross-section or pooled analysis and shorter post-adoption period (Cameran and Perotti, 2014). However, using an extended post-adoption period data, the authors base the study on analytical panel model, which directly examine the cost side of IFRS adoption with size as joint key explanatory variables with emphasis on financial institutions and external auditors.

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Evaluation of Beta CAPM under Financial Leverage Scenarios in Viet Nam Real Estate Industry under Financial Leverage

LAPLAGE EM REVISTA ◽

10.24115/s2446-622020217extra-e1227p.497-509 ◽

2021 ◽

Vol 7 (Extra-E) ◽

pp. 497-509

Author(s):

Phan Anh

Keyword(s):

Real Estate ◽

Stock Price ◽

Stock Exchange ◽

Risk Level ◽

Viet Nam ◽

Real Estate Industry ◽

Financial Leverage ◽

Financial Reports ◽

Listed Firms ◽

Bank System

This paper evaluates the impacts of external financing on market risk for the listed firms in the Vietnam real estate industry. In order to propose evidence for establishing policies in risk management and governance, authors use live data of stock price and rates form bank system and Vietnam stock exchange. Research findings show that when estimating asset and equity beta of total 45 listed companies in Viet Nam real estate industry with a proper traditional model, beta values, in general, for many institutions are acceptable. Then, 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 (0,348) when leverage increases to 30% and it increases (0,385) if leverage decreases down to 20%. And 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%. And the asset beta var value is quite small, showing leverage efficiency.

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