ResearchBib Share Your Research, Maximize Your Social Impacts
Sign for Notice Everyday Sign up >> Login

Evaluation of Leverage Impact on the Risk Level of Viet Nam Water Industry

Journal: International Journal of Mechanical and Production Engineering Research and Development (IJMPERD ) (Vol.10, No. 3)

Publication Date:

Authors : ; ;

Page : 3803-3812

Keywords : Equity Beta; Financial Structure; Financial Crisis; Risk; External Financing; Water Industry JEL CLASSIFICATION: G010; G100; G390;

Source : Downloadexternal Find it from : Google Scholarexternal


This paper estimates the impacts of external financing on market risk for the listed firms in the Viet nam water industry, esp. after the financial crisis 2007-2009. First, by using quantitative and analytical methods to estimate asset and equity beta of total 10 listed companies in Viet Nam water 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 (0,606) 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.

Last modified: 2021-01-05 17:07:07