IMPACTS OF EXTERNAL FINANCING ON THE RISK LEVEL OF VIET NAM NATURAL GAS AND OIL INDUSTRY DURING AND AFTER THE GLOBAL CRISIS 2007-2009
DOI:
https://doi.org/10.29121/granthaalayah.v3.i9.2015.2945Keywords:
Equity Beta, Financial Structure, Financial Crisis, Risk, External Financing, Gas And Oil IndustryAbstract [English]
This paper estimates the impacts of external financing on market risk for the listed firms in the Viet nam natural gas and oil industry, esp. after the financial crisis 2007-2009.
First, by using quantitative and analytical methods to estimate asset and equity beta of total 15 listed companies in Viet Nam natural gas and oil 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 (0,231) when leverage increases to 30% and vice versa.
Third, by changing leverage in 3 scenarios, we recognized the dispersion of risk level decreases (measured by equity beta var) if the leverage increases to 30%.
Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.
Downloads
References
Ajinkya, Bijal., and Kumar, Mahesh. Taxation aspects of Mergers and Acquisitions. Asia-Pacific Tax Bulletin. 2012.
Bancel, Franck., and Mittoo, Usha R. Financial Flexibility and The Impact of The Global Financial Crisis : Evidence from France. International Journal of Managerial Finance. 2011. DOI: https://doi.org/10.2139/ssrn.1587302
Eugene, Fama F., and French, Kenneth R. The Capital Asset Pricing Model: Theory and Evidence. Journal of Economic Perspectives. 2004. DOI: https://doi.org/10.2139/ssrn.440920
Flifel, Kaouther. Financial Markets between Efficiency and Persistence : Empirical Evidence on Daily Data . Asian Journal of Finance and Accounting . 2012. DOI: https://doi.org/10.5296/ajfa.v4i2.1827
Grullon, Gustavo., Lyandres, Evgeny., and Zhdanov, Alexei. Real Options, Volatility and Stock Returns. Journal of Finance. 2012. DOI: https://doi.org/10.2139/ssrn.1745052
Hai, Nguyen Minh., Hien, Phan Tat., and Linh, Dang Huyen. Phân tích tác động của phá giá tiền tệ đến tăng trưởng kinh tế VN thời kỳ 2000-2012. Journal of Economic Development. 2013.
Huy, Dinh T.N. Estimating Beta of Viet Nam listed construction companies groups during the crisis. Journal of Integration and Development.2012.
Kale, Jayant R., Meneghetti, Costanza., and Sharur, Husayn. Contracting With Non-Financial Stakeholders and Corporate Capital Structure: The Case of Product Warantties. Journal of Financial and Quantitative Analysis. 2013. DOI: https://doi.org/10.1017/S002210901300029X
Maria, Ana POPA. The Impact of Social Factors on Economic Growth: Empirical Evidence for Romania and European Union Countries. Romanian Journal of Fiscal Policy. 2012.
Varotto, Simone. Liquidity Risk, Credit Risk, Market Risk and Bank Capital. International Journal of Managerial Finance . 2011. DOI: https://doi.org/10.2139/ssrn.1746915
Other web sources:
www.tuoitre.com.vn;
www.saigontimes.com.vn;
www.mof.gov.vn ;
www.vneconomy.com.vn ;
Downloads
Published
How to Cite
Issue
Section
License
With the licence CC-BY, authors retain the copyright, allowing anyone to download, reuse, re-print, modify, distribute, and/or copy their contribution. The work must be properly attributed to its author.
It is not necessary to ask for further permission from the author or journal board.
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.
