scholarly journals Measuring Equity and Asset Beta– Evidence in Viet Nam Three Insurance and Financial Service Industries After Crisis 2007-2009 and Low Inflation Period 2015-2017

2019 ◽  
pp. 196-208
Author(s):  
Dinh Tran Ngoc Huy
Keyword(s):  
Economic Development ◽  
Financial Crisis ◽  
Banking Industry ◽  
Insurance Industry ◽  
Market Risk ◽  
Financial Service ◽  
Service Industries ◽  
Risk Level ◽  
Viet Nam ◽  
Stock Investment

Vietnam financial service industries are growing and contributing much to the economic development and has been affected by inflation. High and increasing inflation might reduce values of insurance and banking contracts. This paper measures the volatility of market risk in Viet Nam banking, insurance and stock investment industry after this period (2015-2017). The main reason is the necessary role of the financial system in Vietnam in the economic development and growth in recent years always go with risk potential and risk control policies. This research paper aims to figure out how much increase or decrease in the market risk of Vietnam banking, insurance and stock investment firms during the post-low inflation environment 2015-2017, compared to what happened in the financial crisis 2007-2009.First, by using quantitative combined with comparative data analysis method, we find out the risk level measured by equity beta mean in the banking industry has increased whereas the risk fluctuation also increased. Second, stock investment industry has the level of market risk as well as the risk fluctuation decreasing. Third, different from the 2 above industries, insurance industry experienced the level of market risk increasing while the risk volatility decreasing. Then, one of its major findings is the comparison between risk level of stock investment industry during the financial crisis 2007-2009 compared to those in the post-low inflation time 2015-2017. During the financial crisis 2007-09, stock industry has the highest beta value whereas during the post-low inflation time, banking industry maintained the highest value. 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 2015-2017. And our conclusion part will recommends some policies and plans to deal with it.

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 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.

Sign in / Sign up

Export Citation Format

Share Document