Full Length Research Paper
Risk Level of Viet Nam Airlines and Tourism Industry under Financial Leverage during and after the Global Crisis 2007-2009
Dinh Tran Ngoc Huy
Banking University HCMC Viet Nam – GSIM, International University of Japan, Japan
Received April 14, 2014; Accepted May 12, 2014
After the financial crisis 2007-2009, this paper evaluates the impacts of external financing on market risk for the listed firms in the Vietnam airlines and tourism industry. First, by using quantitative and analytical methods to estimate asset and equity beta of total 10 listed companies in Vietnam airlines and tourism 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 (asset beta mean of 0,306) when leverage increases to 30% and it increases (0,413) if leverage decreases down to 20%. Third, by changing leverage in 3 scenarios, we recognized the dispersion of risk level, measured by asset beta var, decreases if the leverage increases to 30%. And the asset beta var value is quite small, showing leverage efficiency. Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.
Keywords: Equity beta, Financial structure, Financial crisis, Risk, External financing, Tourism industry