scholarly journals 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

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.

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

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.

scholarly journals The risk level of Vietnam non-banking investment and financial services industry under financial leverage during and after the global crisis 2007-2011

2013 ◽  
Vol 3 (3) ◽  
pp. 48-55
Author(s):  
Dinh Tran Ngoc Huy
Keyword(s):  
Financial Services ◽  
Analytical Methods ◽  
Risk Level ◽  
Financial Services Industry ◽  
Viet Nam ◽  
Traditional Model ◽  
External Financing ◽  
Financial Reports ◽  
Listed Firms ◽  
Services Industry

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.

scholarly journals 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

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.

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

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.

Unfunded Public Employee Health Care Benefits and GASB No. 45

2007 ◽  
Vol 21 (3) ◽  
pp. 245-263 ◽  
Author(s):  
Elizabeth K. Keating ◽  
Eric S. Berman
Keyword(s):  
Health Care ◽  
Financial Reporting ◽  
Full Range ◽  
Financial Reports ◽  
Employment Benefits ◽  
Care Plans ◽  
Advantages And Disadvantages ◽  
Government Accounting ◽  
The Government ◽  
The Impact

The Government Accounting Standards Board (GASB) recently released Statement No. 45, Accounting and Financial Reporting by Employers for Post-Employment Benefits Other Than Pensions and its companion Statement No. 43 for pooled stand-alone health care plans, which will profoundly affect American governmental finance. The goal of this article is to encourage governments to consider carefully a full range of options in funding and restructuring other post-employment benefits (OPEB). This article will review Statement No. 45's potential impact on governments and review existing disclosures in financial reports as well as bond offering statements. The article will discuss the statement's impact on budgets and governmental operations, including collective bargaining. Funding options under Statement No. 45 will be detailed, including the advantages and disadvantages of irrevocable trusts and OPEB bonds. The article will also discuss the impact of Medicare Part D subsidies received by governments, as well as the bond rating implications of policy decisions surrounding OPEB. As the largest government entities are just now implementing GASB Statement No. 45, estimates of the magnitude of unfunded OPEB liabilities are limited as are the strategies likely to be adopted to cover these obligations. This article offers a summary of the unfunded OPEB liabilities reported by states and major cities and suggests some measures for assessing the ability of these entities to address these costs.

The performance of the Broad Based Black Economic Empowerment compliant listed property firms in South Africa

2016 ◽  
Vol 34 (1) ◽  
pp. 3-26 ◽  
Author(s):  
Omokolade Akinsomi ◽  
Katlego Kola ◽  
Thembelihle Ndlovu ◽  
Millicent Motloung
Keyword(s):  
Stock Returns ◽  
Factor Model ◽  
Stock Exchange ◽  
Sharpe Ratio ◽  
Economic Empowerment ◽  
Content Type ◽  
Black Economic ◽  
Black Economic Empowerment ◽  
The Government ◽  
The Impact

Purpose – The purpose of this paper is to examine the impact of Broad-Based Black Economic Empowerment (BBBEE) on the risk and returns of listed and delisted property firms on the Johannesburg Stock Exchange (JSE). The study was investigated to understand the impact of Black Economic Empowerment (BEE) property sector charter and effect of government intervention on property listed markets. Design/methodology/approach – The study examines the performance trends of the listed and delisted property firms on the JSE from January 2006 to January 2012. The data were obtained from McGregor BFA database to compute the risk and return measures of the listed and delisted property firms. The study employs a capital asset pricing model (CAPM) to derive the alpha (outperformance) and beta (risk) to examine the trend amongst the BEE and non-BEE firms, Sharpe ratio was also employed as a measurement of performance. A comparative study is employed to analyse the risks and returns between listed property firms that are BEE compliant and BEE non-compliant. Findings – Results show that there exists differences in returns and risk between BEE-compliant firms and non-BEE-compliant firms. The study shows that BEE-compliant firms have higher returns than non-BEE firms and are less risky than non-BEE firms. By establishing this relationship, this possibly affects the investor’s decision to invest in BEE firms rather than non-BBBEE firms. This study can also assist the government in strategically adjusting the policy. Research limitations/implications – This study employs a CAPM which is a single-factor model. Further study could employ a multi-factor model. Practical implications – The results of this investigation, with the effects of BEE on returns, using annualized returns, the Sharpe ratio and alpha (outperformance), results show that BEE firms perform better than non-BEE firms. These results pose several implications for investors particularly when structuring their portfolios, further study would need to examine the role of BEE on stock returns in line with other factors that affect stock returns. The results in this study have several implications for government agencies, there may be the need to monitor the effect of the BEE policies on firm returns and re-calibrate policies accordingly. Originality/value – This study investigates the performance of listed property firms on the JSE which are BEE compliant. This is the first study to investigate listed property firms which are BEE compliant.

Measuring the Volatility of Market Risk of Vietnam Banking Industry After the Low Inflation Period 2015–2017

2020 ◽  
Vol 23 (04) ◽  
pp. 2050029
Author(s):  
Nguyen Ngoc Thach ◽  
Nguyen Van Bao ◽  
Dinh Tran Ngoc Huy ◽  
Bui Dan Thanh ◽  
Le Thi Viet Nga ◽  
...  
Keyword(s):  
Financial Crisis ◽  
Banking Industry ◽  
Market Risk ◽  
Vital Role ◽  
Risk Level ◽  
Economic Development And Growth ◽  
Research Findings ◽  
Bank System ◽  
Risk Potential

The Vietnam economy has gained lots of achievements after the financial crisis 2007–2011, until it reached a low inflation rate of 0.6% in 2015. This paper measures the volatility of market risk in Vietnam banking industry after this period (2015–2017). The main reason is the vital role of the bank system in Vietnam in the economic development and growth in recent years always goes with risk potential and risk control policies. This research paper aims to figure out the increase or decrease in the market risk of Vietnam banking firms during the post-low inflation period 2015–2017. First, by using the quantitative combined with comparative data analysis method, we find out the risk level measured by equity beta mean in the banking industry is acceptable, although it is little higher than ([Formula: see text]) 1. Then one of its major findings is the comparison between risk level of banking industry during the financial crisis 2007–2009 compared to those in the post-low inflation time 2015–2017. In fact, the research findings show us market risk level during the post-low inflation time has increased much. We compare beta in two periods because we want to figure out the reason underlying the fact beta has increased. One of the reasons is that the accumulated banking risks during the longer time and criteria to meet Basel 2 have been partially contributing to increasing market risk. 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 show us warning that the market risk might be higher during the post-low inflation period 2015–2017. Our conclusion part will recommend some policies and plans to deal with it.

scholarly journals Petroleum and Food Sectors Lost Stock Returns against Investments in PSX

2021 ◽  
Vol VI (I) ◽  
pp. 99-111
Author(s):  
Syed Muhammad Ali Tirmizi ◽  
Haider Ali ◽  
Sharif Ullah Jan
Keyword(s):  
Exchange Rate ◽  
Stock Returns ◽  
Factor Model ◽  
Structural Break ◽  
Unit Root Test ◽  
Listed Firms ◽  
Market Return ◽  
Exchange Rate Exposure ◽  
Petroleum Sector ◽  
The Impact

The impact of exchange rate exposure and market return on stock returns of petroleum and food sectors PSX listed firms has been investigated empirically. Two econometric models formulated based on the Jorion approach of the two-factor model have been analyzed for petroleum and food sectors stock returns, market return and exchange rate (i.e., USD) for the study period 2005-2012, which represent an era of military regime proceeded by the democratic government of Pakistan Peoples Party. A sample of 37 petroleum and food sectors listed firms have been evaluated by applying the unit root test and OLS multiple regression. Further, the Quandt-Andrews test of unknown breakpoint has been applied, which showed an extended structural break during the period 2007 to 2010. Additionally, the results revealed that the coefficients of exchange rate and market return are negatively related to petroleum and food sectors stock returns. Therefore, investors must take precautions before investing funds in stocks of food and petroleum sector firms.

scholarly journals The Effects of Corporate Bonds on Employment: Early Evidence from Greece

2020 ◽  
Vol 12 (2) ◽  
pp. 235-253
Author(s):  
Sotirios Karagiannis ◽  
Dimitrios Thomakos
Keyword(s):  
Corporate Bonds ◽  
Banking System ◽  
External Financing ◽  
Listed Firms ◽  
Negative Effect ◽  
The Impact ◽  
First Time ◽  
Investment Choices ◽  
Positive Effect

This study investigates the impact of corporate bonds issued by Greek listed firms on employment. Even though external financing and the effects on employment has been studied in the literature, we extend the existing literature by focusing for the first time on the specific role of corporate bonds on employment. We have collected all the relevant papers on this line of the literature and concisely report them in a table format and then use them in analyzing our results. Our empirical analysis is based on a panel dataset from 2001 to 2014 and we examine the effect of corporate bonds in the pre and post period of the Greek economic crisis, in which the banking system is vulnerable and unable to provide financing to the firms. The results suggest that corporate bonds have a positive effect on employment in the pre-crisis sample, denoting that firms hire employees and proceed to investment choices. On the contrary, during the recession, corporate bonds have a negative effect on employment. Firms reduce their costs and try to control their debt obligations by issuing corporate bonds.

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