The Risk Level of Viet Nam Manufacturing Material Industry under Financial Leverage during and After the Global Crisis 2009-2011

This paperwork evaluates the impacts of external financing on market risk for the listed firms in the Viet nam manufacturing material industry, esp. during and after the financial crisis 2009-2011. First of all, by using quantitative and analytical methods to estimate asset and equity beta of total 99 listed companies in Viet Nam manufacturing material industry with a proper traditional model, we found out that the beta values, in general, for many institutions are acceptable. Second, under 3 different scenariosof 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% but increases more 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 from 0,311 to 0,317 if the leverage increases to 30% whereas decreases to 0,312 if leverage decreases to 20%. But the dispersion measuredby asset beta var increases little to 0,133 (leverage down 20%), showing leverage impact.Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.

کلیدواژه ها:

equity beta ، financial structure ، financial crisis ، risk ، external financing ، manufacturing material industry