Impacts of External Financing on The Risk Level of Viet Nam Software Industry During and After The Global Crisis 2007-2009

  • Dinh Tran Ngoc Huy et al.

Abstract

This paper estimates the impacts of external financing on market risk for the listed firms in the Viet
nam software industry, esp. after the financial crisis 2007-2009.
First, by using quantitative and analytical methods to estimate asset and equity beta of total 6 listed
companies in Viet Nam software 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 (0,284)
when leverage increases to 30% and vice versa.
Third, by changing leverage in 3 scenarios, we recognized the dispersion of risk level increases
(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.

Published
2020-02-02
How to Cite
et al., D. T. N. H. (2020). Impacts of External Financing on The Risk Level of Viet Nam Software Industry During and After The Global Crisis 2007-2009. International Journal of Advanced Science and Technology, 29(04), 1326 - 1335. Retrieved from http://sersc.org/journals/index.php/IJAST/article/view/5197