Tax rates effects on the risk level of listed Viet Nam real estate firms during global economic crisis 2007-2009
Journal Title: Economics, Management and Sustainability - Year 2018, Vol 3, Issue 2
Abstract
The emerging stock market in Viet Nam has been developed since 2006 and affected by the financial crisis 2007-2009. This study analyzes the impacts of tax policy on market risk for the listed firms in the real estate industry as it becomes necessary. First, by using quantitative and analytical methods to estimate asset and equity beta of total 45 listed companies in Viet Nam real estate industry with a proper traditional model, we found out that the beta values, in general, for many institutions 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 0.750, 0.762 and 0.769. 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.
Authors and Affiliations
Dinh Tran Ngoc Huy
Keywords
Related Articles
- EP ID EP439784
- DOI 10.14254/jems.2018.3-2.3
- Views 98
- Downloads 0
Specific risks and profitability of Islamic Banks in MENA region
Islamic banks offer Sharia-compliant financial products. In addition to conventional risks, these banks face specific risks which will have negative effects. We investigate the effects of specific risks on the performanc...
Development of family leisure activities in the hotel and restaurant businesses: Psychological and pedagogical aspects of animation activity
The development of family leisure activities in the hotel and restaurant businesses with consideration of psychological and pedagogical aspects of animation activity is an actual task facing modern managers. The purpose...
Challenge of mitigating bank frauds by judicious mix of technology: Experience of a developing country
Banks are the engines that drive the operations in the financial sector, money markets and growth of an economy. With the rapidly growing banking industry in India, frauds in banks are also increasing fast, and fraudster...
Determinants of foreign direct investment in Tunisia: Empirical assessment based on an application of the autoregressive distributed Lag model
In recent years, the changing economic and political environment in Tunisia led to a renewed interest on the drivers of foreign direct investment, given its potential important gains. In this study, we investigated the i...
The impact of Brexit on the UK inwards FDI
Considering the impact of Brexit on the foreign direct investment (FDI) in the United Kingdom, contrary to previous studies from economic literature, this research focused on two proxies for FDI: FDI projects with the as...