Financial Risk Management in Case of Viet Nam Real Estate Industry under the Impacts of Competitors and Leverage during and after the Global Crisis | Chapter 13 | Current Perspective to Economics and Management Vol. 4
Risk management ocvering financial risk management is really necessary in many kinds of firms in recent years. Financial risk in real estate industry has become a hot issue during and after the clobal crisis 2007-2011. In developing countries such as Vietnam, financial risk management via measuring market risk, is among risk tools to present risk policies for companies and government.
Using a two (2) factors model, this chapter analyzes the impacts of both financial leverage and the size of firms’ competitors in the real estate industry on the market risk level of 45 listed companies in this category.
This paper founds out that the risk dispersion level in this sample study could be minimized in case financial leverage decreases down to 20% and the competitor size keeping approximate size as current (measured by equity beta var of 0,195).
Beside, the empirical research findings show us that the risk level could be reduced when financial leverage increases up to 30% and the size of competitor slightly smaller (measured by equity beta value of 0,736).
Last but not least, this paper illustrates calculated results that might give proper recommendations to relevant governments and institutions in re-evaluating their policies during and after the financial crisis 2007-2011.
Dinh Tran Ngoc Huy
Banking University, Ho Chi Minh City, Vietnam and Graduate School of International Management, International University of Japan, Niigata, Japan.
Pham Tuan Anh
Thuongmai University, Vietnam.
Nguyen Duy Mau
Faculty of Economics and Business Administration, DaLat University, Vietnam.