Evaluation of Systematic Risk of Viet Nam Construction MaterialIndustry During the Pre-Low Inflation Period 2012-2014

2020 ◽  
Vol 1 (1) ◽  
pp. 1-6
Author(s):  
Dr. Pham Tuan Anh
Keyword(s):  
Risk Management ◽  
Rapid Growth ◽  
Analytical Methods ◽  
Construction Material ◽  
Systematic Risk ◽  
Market Risk ◽  
Viet Nam ◽  
Research Results

The construction materialindustry is one of the most rapidly growing sectors, with many achievements both in Vietnam and in Asia. In recent years, its rapid growth has produced revenues from business activities. One of the key objectives of thispaper is to assess market risk volatility in construction material businesses in the 2012-2014 pre-low inflation period. Our first findings are to be found that beta values in general (< 1) for most of our constructionmaterialcompanies are appropriate when we apply quantitative, statistical and analytical methods to evaluate the asset beta and beta CAPM of 20 listed Viet Nam construction materialcompanies.However, we analyze the market risk volatility, determined byasset and equitybeta var, during the post-low inflation period in thissector and compare results in two circumstances: risk fluctuation in pre-law inflation time 2012-14is lower than that in post-low inflation period 2015-2017.Finally, if we observe in2 periods, BetaCAPM or equity beta mean goes up in case post-low inflation period. At last, policies in risk management and governance are suggested in the conclusion based on the research results and findings. In the post-low inflation environment, we alert that Beta fluctuations could bea little higher.JEL classification numbers:G00, G390, C83

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 ESTIMATION AND DECOMPOSITION OF VALUE-AT-RISK FOR NON-NORMAL PORTFOLIO RETURNS

2013 ◽  
Vol 14 (Supplement_1) ◽  
pp. S213-S226
Author(s):  
Doowoo Nam
Keyword(s):  
At Risk ◽  
Risk Management ◽  
Analytical Methods ◽  
Value At Risk ◽  
Decomposition Analysis ◽  
Market Risk ◽  
Management Tool ◽  
Portfolio Returns ◽  
Var Decomposition ◽  
The Individual

Value-at-risk (VaR) is a widely used measure for evaluating the market risk of a trading portfolio. This article presents the g-and-h method for estimating the VaR of a portfolio with non-normal returns, and adds to the usefulness of VaR as a risk management tool by decomposing the portfolio into individual VaRs to estimate the contribution of the individual components toward the overall VaR. While the VaR decomposition is algebraically simple under the assumption of normality, that is not the case under non-normality which is the property exhibited by most financial returns. We show that, by using the g-and-h VaR method, the decomposition analysis under non-normality can be performed with the same degree of intuitiveness and ease as for the analytical methods based on the assumption of normality.

The management of risk in a dryland environment

2011 ◽  
pp. 13-21
Author(s):  
D.I. Gray ◽  
J.I. Reid ◽  
D.J. Horne
Keyword(s):  
Risk Management ◽  
Service Providers ◽  
Management Strategies ◽  
Subterranean Clover ◽  
Farming Systems ◽  
Market Risk ◽  
Farm Size ◽  
Forage Crops ◽  
Risk Management Strategies ◽  
Upside Risk

A group of 24 Hawke's Bay hill country farmers are working with service providers to improve the resilience of their farming systems. An important step in the process was to undertake an inventory of their risk management strategies. Farmers were interviewed about their farming systems and risk management strategies and the data was analysed using descriptive statistics. There was considerable variation in the strategies adopted by the farmers to cope with a dryland environment. Importantly, these strategies had to cope with three types of drought and also upside risk (better than expected conditions), and so flexibility was critical. Infra-structure was important in managing a dryland environment. Farmers chose between increased scale (increasing farm size) and geographic dispersion (owning a second property in another location) through to intensification (investing in subdivision, drainage, capital fertiliser, new pasture species). The study identified that there may be scope for further investment in infra-structural elements such as drainage, deeper rooting alternative pasture species and water harvesting, along with improved management of subterranean clover to improve flexibility. Many of the farmers used forage crops and idling capacity (reduced stocking rate) to improve flexibility; others argued that maintaining pasture quality and managing upside risk was a better strategy in a dryland environment. Supplementary feed was an important strategy for some farmers, but its use was limited by contour and machinery constraints. A surprisingly large proportion of farmers run breeding cows, a policy that is much less flexible than trading stock. However, several farmers had improved their flexibility by running a high proportion of trading cattle and buffer mobs of ewe hoggets and trade lambs. To manage market risk, the majority of farmers are selling a large proportion of their lambs prime. Similarly, cattle are either sold prime or store onto the grass market when prices are at a premium. However, market risk associated with the purchase of supplements and grazing was poorly managed.

scholarly journals Emerging surface characterization techniques for carbon steel corrosion: a critical brief review

2017 ◽  
Vol 473 (2199) ◽  
pp. 20160852 ◽  
Author(s):  
D. Dwivedi ◽  
K. Lepkova ◽  
T. Becker
Keyword(s):  
Carbon Steel ◽  
Analytical Methods ◽  
Surface Characterization ◽  
Construction Material ◽  
Film Surface ◽  
Surface Films ◽  
Corrosive Media ◽  
Metallic Substrates ◽  
X Ray ◽  
X Ray Absorption

Carbon steel is a preferred construction material in many industrial and domestic applications, including oil and gas pipelines, where corrosion mitigation using film-forming corrosion inhibitor formulations is a widely accepted method. This review identifies surface analytical techniques that are considered suitable for analysis of thin films at metallic substrates, but are yet to be applied to analysis of carbon steel surfaces in corrosive media or treated with corrosion inhibitors. The reviewed methods include time of flight-secondary ion mass spectrometry, X-ray absorption spectroscopy methods, particle-induced X-ray emission, Rutherford backscatter spectroscopy, Auger electron spectroscopy, electron probe microanalysis, near-edge X-ray absorption fine structure spectroscopy, X-ray photoemission electron microscopy, low-energy electron diffraction, small-angle neutron scattering and neutron reflectometry, and conversion electron Moessbauer spectrometry. Advantages and limitations of the analytical methods in thin-film surface investigations are discussed. Technical parameters of nominated analytical methods are provided to assist in the selection of suitable methods for analysis of metallic substrates deposited with surface films. The challenges associated with the applications of the emerging analytical methods in corrosion science are also addressed.

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