RISK LEVEL OF VIETNAM ENTERTAINMENT INDUSTRY UNDER FINANCIAL LEVERAGE DURING AND AFTER THE GLOBAL CRISIS 2007-2009

Huy Dinh

Romanian Economic Business Review, 2014, vol. 9, issue 2, 101-116

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 entertainment industry. First, by using quantitative and analytical methods to estimate asset and equity beta of total 5 listed companies in Viet Nam entertainment 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 (0,168) when leverage increases to 30% and it increases (0,307) 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; entertainment industry (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.rebe.rau.ro/RePEc/rau/journl/SU14/REBE-SU14-A8.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rau:journl:v:9:y:2014:i:2:p:101-116

Access Statistics for this article

More articles in Romanian Economic Business Review from Romanian-American University Contact information at EDIRC.
Bibliographic data for series maintained by Alex Tabusca ().