International Journal of Academic Research and Development

International Journal of Academic Research and Development


International Journal of Academic Research and Development
International Journal of Academic Research and Development
Vol. 1, Issue 1 (2016)

Whether different changing tax rates cause the risk level of Viet Nam insurance and stock investment firms increase or decrease so much


Dinh Tran Ngoc Huy

Many global markets as well as the emerging stock market in Viet Nam has been affected by the financial crisis 2007-2009, in which many countries find out macro policies to help the economy. So, this study analyzes the impacts of tax policy on market risk for the listed firms in the insurance and stock investment industry as it becomes necessary. First, by using quantitative and analytical methods to estimate asset and equity beta of total 13 listed companies in Viet Nam insurance and stock investment industry with a proper traditional model, we found out that the beta values, in general, for many companies 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 0,516, 0,517 and 0,518.These values are lower than those of the listed VN construction firms but little higher than those of the listed Vn banking firms. 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.
Pages : 16-22 | 1318 Views | 256 Downloads