The Risk Level of Viet Nam Stock Investment Industry after the Global Crisis 2009-2011

Abstract

This paper evaluates the impacts of external financing on market risk for the listed firms in the Viet nam
tourism industry, esp. after the financial crisis 2009-2011. First, by using quantitative and analytical
methods to estimate asset and equity beta of total 10 listed companies in Viet Nam 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
when leverage increases to 30% and it increases 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
if the leverage increases to 30%. But the dispersion measured by asste beta var decreases, showing
leverage efficiency. Finally, this paper provides some outcomes that could provide companies and
government more evidence in establishing their policies in governance.