Selecting Various Industrial Competitors Affect the Risk Level of Viet Nam Wholesale and Retail Industry During and After the Global Crisis 2007-2011

Abstract

Using a one factor model, this paperwork estimates the impacts of the size of firms’ competitors in the wholesale and retail industry on the market risk level, measured by equity and asset beta, of 9 listed companies in this category. This study identified that the risk dispersion level in this sample study could be minimized in case the competitor size doubles (measured by asset beta var of 0,0243). Beside, the empirical research findings show us that asset beta max value increases from 0,640 to 1,044 when the size of competitor doubles. Last but not least, most of beta values are acceptable. Ultimately, this paper illustrates calculated results that might give proper recommendations to relevant governments and institutions in re-evaluating their policies during and after the financial crisis 2007-2011