Financial Risk Management via the Measurement of Volatility of Market Risk of Viet Nam Tourism and Airline Industry after the Low Inflation Period 2015-2017 | Chapter 04 | Current Perspective to Economics and Management Vol. 4

Risk management policies and tools have been becoming one of hottest issues since collapses during global crisis 2007-2009. The Vietnam economy and tourism & airline industry have gained lots of achievements after the financial crisis 2007-2011, until it reached a low inflation rate of 0.6% in 2015. Tourism & airline companies face challenges in expanding Vietnam market such as pricing policy and supporting services, etc. This paper measures the volatility of market risk in Viet Nam tourism & airline industry after this period (2015-2017). The main reason is the vital role of the tourism & airline company group in Vietnam in the economic development and growth in recent years always go with risk potential and risk control policies.

This research paper aims to figure out how much increase or decrease in the market risk of Vietnam tourism & airline firms during the post-low inflation period 2015-2017.

First, by using quantitative combined with comparative data analysis method, we find out the risk level measured by equity beta mean in the tourism & airline industry is acceptable, i.e it is little lower than (<) 1.

Then, one of its major findings is the comparison between risk level of tourism & airline industry during the financial crisis 2007-2009 compared to those in the post-low inflation time 2015-2017. In fact, the research findings show us market risk fluctuation, measured by asset and equity beta var, during the post-low inflation time has decreased slightly.

Finally, this paper provides some ideas that could provide companies and government more evidence in establishing their policies in governance. This is the complex task but the research results shows us warning that the market risk volatility might be higher during the post-low inflation period 2015-2017. And our conclusion part will recommend some policies and plans to deal with it. Finding new potential markets and credit and financing policies are among directions for tourism & airline companies.

Author(s) Details

Dinh Tran Ngoc Huy
Banking University, Ho Chi Minh City, Vietnam and Graduate School of International Management, International University of Japan, Niigata, Japan.

Bui Thi Thu Loan
Hanoi University of Industry, Ha Noi, Vietnam.

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Financial Risk Management via a Two Factors Model on the Risk Level of Vietnam Electric Power Industry during and after the Global Crisis | Chapter 04 | Emerging Issues and Development in Economics and Trade Vol. 3

This research paper aims to find out the risk level of listed electric power firms increasing or decreasing during the crisis 2007-2011. The significance of this paper is to provide these firms with financing information based on risk level. Using a two (2) factors model, this research paper analyzes the impacts of both financial leverage and the size of firms’ competitors in the electric power industry on the market risk level of 20 listed companies in this category.

This paper founds out that the risk dispersion can be reduced to 0,039 (asset beta var) if leverage is up to 30%.

Beside, the empirical research findings show us that the market risk level measured by asset beta mean is also reduced to 0,131 when financial leverage increases 30%.

Last but not least, this paper illustrates calculated results that might give proper recommendations to relevant governments and institutions in re-evaluating their policies after the financial crisis 2007-2011.

Author(s) Details

Pham Tuan Anh
Thuongmai University, Vietnam.

Dinh Tran Ngoc Huy
Banking University, HCM City, Vietnam and GSIM, International University of Japan, Japan.

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