Risk Level of Viet Nam Human Resource Industry under Financial Leverage during and After the Global Crisis 2007- 2011

Abstract

After the financial crisis 2007-2009, this paper evaluates the impacts of external financing on market risk
for the listed firms in the Viet nam HR industry.
First, by using quantitative and analytical methods to estimate asset and equity beta of total 4 listed
companies in Viet Nam HR 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 0,27) when leverage increases to 30% and it increases (0,284) if leverage decreases down to
20%.
Third, by changing leverage in 3 scenarios, we recognized the dispersion of risk level, measured by equity
and asset beta var, increases very slightly (0,222) if the leverage increases to 30%. But the difference in
asset beta var value is quite small, showing leverage having not much impact.
Finally, this paper provides some outcomes that could provide companies and government more evidence
in establishing their policies in governance.