The Impacts of Selecting Various Industrial Competitors on the Risk Level of Viet Nam Hardware Industry during and After the Global Crisis

1Nguyen Duc Nhuan, Dinh Tran Ngoc Huy, Nguyen Thi Phuong Thanh and Pham Minh Dat

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Abstract:

Using a one factor model, this paperwork estimates the impacts of the size of firms’ competitors in the hardware industry on the market risk level, measured by equity and asset beta, of 22 listed companies in this category. This study identified that the risk dispersion level in this sample study could be minimized in case the competitor size doubles (measured by equity beta var of 0,678). Beside, the empirical research findings show us that asset beta min value decreases from 0,054 to 0,030 when the size of competitor doubles. Last but not least, most of beta values are acceptable. Ultimately, 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.

Keywords:

Risk Management, Competitive Firm Size, Market Risk, Asset and Equity Beta, Hardware Industry.

Paper Details
Month4
Year2020
Volume24
IssueIssue 5
Pages2704-2712