Global Advanced Research Journal of Management and Business Studies (ISSN: 2315-5086) January 2018 Vol. 7(1), pp 001-011

Copyright © 2018 Global Advanced Research Journals   

 

Original Research Articles

The Risk Level of Viet Nam Banking Industry Under Financial Leverage During and After The Global Crisis 2009-2011

Dinh Tran Ngoc Huy

Banking University HCMC Viet Nam – GSIM, International University of Japan, Japan

Email: dtnhuy2010@gmail.com

Accepted 26 January 2018

Abstract 

This paperwork evaluates the impacts of external financing on market risk for the listed firms in the Viet nam banking industry, esp. 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 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 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 government more evidence in establishing their policies in governance.

keyword: Equity beta, Financial structure, Financial crisis, Risk, External financing, Banking industry







 











 








Related Articles


Original Research Article
Niamatullah Kakar, Habibur Rehman, Ferhat Abbas, Asmatullah Kakar, Ihsanullah Kakar and Muhammad Ali Khan
Seroprevalence and Risk Factors of Hepatitis B, C and Sexually Transmitted Treponema Pallidum Infections in Jail Inmates of Quetta, Balochistan
Glo. Adv. Res. J. Manage. Bus. Stud. November 2014 Vol: 3(11): - [Abstract] [Full Text - PDF] (118 KB)
Short Communication
Muhammad Imran Qadir and Afshan Saleem
Awareness about ischemic heart disease in University Biotechnology students
Glo. Adv. Res. J. Manage. Bus. Stud. March 2018 Vol: 7(3): - [Abstract] [Full Text - PDF] (72 KB)
Original Research Articles
Hanan MM Tork and Fathia Ahmed Mersal
Middle East Respiratory Syndrome-Corona virus: Knowledge and attitude of Qassim University students, KSA
Glo. Adv. Res. J. Manage. Bus. Stud. April 2018 Vol: 7(4): - [Abstract] [Full Text - PDF] (1,930 KB)
Souad Khemiri and Said Jaouadi
Financial Instability in Tunisia April 2012
Glo. Adv. Res. J. Manage. Bus. Stud. January 2013 Vol: 2(1): - [Abstract] [Full Text - PDF] (153 KB)
Herrero B and Martín-Lobera C
Threatened medicinal plants in Castilla y León (Spain)
Glo. Adv. Res. J. Manage. Bus. Stud. December 2012 Vol: 1(1): - [Abstract] [Full Text - PDF] (327 KB)
Azalea Castro-Rodriguez, Jorge Humberto Serment-Guerrero, Fernando Mejia-Sanchez and Julieta Castillo-Cadena
Polymorphisms GSTT1, GSTM1 and GSTP1 influence in magnitude of DNA damage induced by cyclophosphamide
Glo. Adv. Res. J. Manage. Bus. Stud. September 2018 Vol: 7(7): - [Abstract] [Full Text - PDF] (334 KB)

Current Issue

Viewing Options

View Full Article - PDF
Download Full Article - PDF

Search for Articles

Dinh Tran Ngoc Huy on Google Scholar
Dinh Tran Ngoc Huy on Pubmed

Statistics

Viewed 2295
Printed 504
Downloaded 1047
Powered By iPortal Works