The Risk Level of Viet Nam Construction Industry under the Impacts of a Two Factors Model during and after the Global Crisis 2007-2011

Dr. Dinh Tran Ngoc Huy

Authors

Dr. Dinh Tran Ngoc Huy

Keywords:

equity beta, financial structure, financial crisis, risk, external financing, software industry

Abstract

Using a two (2) factors model, this research paper analyzes the impacts of both financial leverage and the size of firms' competitors in the construction industry on the market risk level of 104 listed companies in this category. This paper founds out that the risk dispersion level in this sample study could be minimized in case financial leverage decreases down to 20% and the competitor size doubles (measured by equity beta var of 0,253). Beside, the empirical research findings show us that the risk level could be reduced when financial leverage increases up to 30% and the size of competitor doubles (measured by equity beta value of 0,934). Last but not least, this paper illustrates calculated results that might give proper recommendations to relevant governments and institutions in reevaluating their policies during and after the financial crisis 2007-2011.

Downloads

How to Cite

The Risk Level of Viet Nam Construction Industry under the Impacts of a Two Factors Model during and after the Global Crisis 2007-2011. (2013). Global Journal of Management and Business Research, 13(27), 1-7. https://journalofbusiness.org/index.php/GJMBR/article/view/

Download Citation

Author Biography

Dr. Dinh Tran Ngoc Huy

Dinh Tran Ngoc Huy holds an MBA in International Management (Major: Finance with Management courses) and is a PhD candidate at Banking University, HCMC. He is affiliated with University of Japan, Department of Management. He serves as a journal editor.

References

John Dexheimer, Carla Haugen (2003) Sarbanes-Oxley: Its Impact on the Venture Capital Community. 2(1).

Fama Eugene, Kenneth French (2004) The Capital Asset Pricing Model: Theory and Evidence.

Kaouther Flifel (2012) Financial Markets between Efficiency and Persistence: Empirical Evidence on Daily Data. 4(2).

Huasheng Gao, Jarrad Harford, Kai Li (2013) Determinants of corporate cash policy: Insights from private firms. 109(3), 623-639. https://doi.org/10.1016/j.jfineco.2013.04.008

Dinh Huy (2012) Estimating Beta of Viet Nam listed construction companies groups during the crisis.

Jayant Kale, Costanza Meneghetti, Husayn Sharur (2013) Contracting with Nonfinancial Stakeholders and Corporate Capital Structure: The Case of Product Warranties. 48(3), 699-727. https://doi.org/10.1017/s002210901300029x

Kate Litvak (2008) Defensive Management: Does the Sarbanes-Oxley Act Discourage Corporate Risk- Taking?. https://doi.org/10.2139/ssrn.1120971

A. Ling (2013) Tax Issues Relating to Intangibles, Asia-Pacific Tax Bulletin. 19(2). https://doi.org/10.59403/e4fssr

Wenling Lu, David Whidbee (2013) Bank Structure and Failure.

Xiying Zhang, Ivy (2007) Economic consequences of the Sarbanes-Oxley Act of 2002. 44(1-2), 74-115. https://doi.org/10.1016/j.jacceco.2007.02.002

A. Ang, J. Chen (2007) CAPM over the long run.

H. Baker, J. Singleton, E. Veit (2011) Survey Research in Corporate Finance: Bridging The Gap Between Theory and Practice.