Предпринимательство и управление организацией

Changing Tax Rates Impacts on the Risk Level of Vietnam Construction Material Firms

Abstract

Dinh Tran Ngoc Huy

The Viet Nam stock market has been affected by the financial crisis 2007-2009. This study analyzes the impacts of tax policy on market risk for the listed firms in the construction material industry as it becomes necessary. First, by using quantitative and analytical methods to estimate asset and equity beta of total 57 listed companies in Viet Nam construction material 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 0,957, 1,011 and 0,961.These values are lower than those of the listed VN construction firms. Third, by changing tax rates in 3 scenarios (25%, 20% and 28%), we recognized equity /asset beta mean and asset beta var increase if tax rate increases from 20% to 25%, then decrease when tax rate goes up from 25% to 28%. Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.