Tax rates effects on the risk level of listed Viet Nam real estate firms during global economic crisis 2007-2009

Main Article Content

Dinh Tran Ngoc Huy http://orcid.org/0000-0002-2358-0699

Abstract

The emerging stock market in Viet Nam has been developed since 2006 and affected by the financial crisis 2007-2009. This study analyzes the impacts of tax policy on market risk for the listed firms in the real estate industry as it becomes necessary. First, by using quantitative and analytical methods to estimate asset and equity beta of total 45 listed companies in Viet Nam real estate 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 tax rates (20%, 25% and 28%), we recognized that there is not large disperse in equity beta values, estimated at 0.750, 0.762 and 0.769. Third, by changing tax rates in 3 scenarios (25%, 20% and 28%), we recognized both equity and asset beta mean values have positive relationship with the increasing levels of tax rate. Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.

Article Details

How to Cite
NGOC HUY, Dinh Tran. Tax rates effects on the risk level of listed Viet Nam real estate firms during global economic crisis 2007-2009. Economics, Management and Sustainability, [S.l.], v. 3, n. 2, p. 29-41, nov. 2018. ISSN 2520-6303. Available at: <http://jems.sciview.net/index.php/jems/article/view/62>. Date accessed: 19 dec. 2018. doi: https://doi.org/10.14254/jems.2018.3-2.3.
Section
Articles

References

ADB and Viet Nam Fact Sheet. (2010).
Al Mamun, M. A. (2013). Performance evaluation of prime bank limited in terms of capital adequacy. Global Journal of Management and Business Research, 13(9), 26-29.
Baker, H. K., Singleton, J. C., & Veit, E. T. (2011). Survey research in corporate finance: bridging the gap between theory and practice. Oxford University Press.
Beenish, A. & Moazzam, J. (2013). A Test of Fama and French Three Factor Model in Pakistan Equity Market. Global Journal of Management and Business Research, 13(7), 24-28.
Flifel, K. (2012). Financial Markets between Efficiency and Persistence: Empirical Evidence on Daily Data. Asian Journal of Finance & Accounting, 4(2), 379-400.
Huy, Dinh T.N. (2013). Beta of Viet Nam Listed Computer and Electrical Company Groups During and After The Financial Crisis 2007-2011. Asian Journal of Finance & Accounting, 5(1), 127-139.
Huy, Dinh T.N. (2013). Estimating beta of Viet Nam listed public utilities, natural gas and oil company groups during and after the financial crisis 2007-2011. Economic and Business Review, 15(1), 57-71.
Ovat, O. O. (2013). Liquidity Constraints and Entrepreneurial Financing in Nigeria: The Fate of Fresh Graduate Entrepreneurs. Global Journal of Management and Business Research, 13(9), 49-57.
Raj, Bhavana., & Sindhu, Dr. (2013). Skill Level in Risk Management: Training in Credit Risk – A Comparative Study of Indian Banks and Foreign Banks. Global Journal of Management and Business Research, 13, 7, 56-62.
Rehman, S. S. F. U. (2013). Relationship between financial leverage and financial performance: Empirical evidence of listed sugar companies of Pakistan. Global Journal of Management and Business Research, 13(8), 45-53.