Changing Tax Policy Impacts on the Risk Level of Viet Nam Wholesale and Retail Firms after the Global Crisis 2007-2011
Many financial markets including but not limit to, the emerging stock market in Viet Nam, have been affected by the financial crisis 2007-2011. This study analyzes the impacts of tax policy on market risk for the listed firms in the wholesale and retail industry during this period as it becomes necessary. First, by using quantitative and analytical methods to estimate asset and equity beta of total 9 listed companies in Viet Nam wholesale and retail 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 0,646, 0,653 and 0,657.These values are much lower than those of the listed VN construction 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.
Dutt, T., & Mark, H. J. (2013). Stock Return Volatility, Operating Performance and Stock Returns: International Evidence on Drivers of the “Low Volatility” Anomaly. Journal of Banking and Finance
Eugene, F. F., & French, K. R. (2004). The Capital Asset Pricing Model: Theory and Evidence. Journal of Economic Perspectives
Flifel, K. (2012). Financial Markets between Efficiency and Persistence : Empirical Evidence on Daily Data. Asian Journal of Finance and Accounting
Grullon, G., Lyandres, E., & Zhdanov, A. (2012). Real Options, Volatility and Stock Returns. Journal of Finance
Hai, N. M., Hien, P. T., & Linh, D. H. (2013). Phân tích tác động của phá giá tiền tệ đến tăng trưởng kinh tế VN thời kỳ 2000-2012. Journal of Economic Development
Huy, D. T.N. (2012). Estimating Beta of Viet Nam listed construction companies groups during the crisis. Journal of Integration and Development
Kimberly, C. A. (2012). In Search of Corporate Tax Incidence. Tax Law Review
Ling, A. (2013). Tax Issues Relating to Intangibles. Asia-Pacific Tax Bulletin
Manos, M., & Chrysa, L. (2013). The Distributional Impact of The Greek Crisis in 2010. Fiscal Studies
Michael P., Matthias, S., & Hannes, W. (2013). Capital Structure, Corporate Taxation, and Firm Age. Fiscal Studies
Pereiro, L. E. (2010). The Beta Dilemma in Emerging Markets. Journal of Applied Corporate Finance
Copyright (c) 2018 Dinh Tran Ngoc Huy
This work is licensed under a Creative Commons Attribution 4.0 International License.