WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 16, 2019
Risk Management via Measuring the Volatility of Market Risk of Viet Nam Hardware Industry during the Post-Low Inflation 2015-2017
Authors: Pham Tuan Anh, Dinh Van Son, Dinh Tran Ngoc Huy
Abstract: In order to build an effective risk management model in hardware industry, we need to measure Beta CAPM and compare and analyze its fluctuations over many periods. This paper measures the volatility of market risk in Viet Nam hardware industry after this period (2015-2017). The main reason is the vital role of the software company group in Vietnam in the economic development and growth in recent years always go with risk potential and risk control policies. This research paper aims to figure out how much increase or decrease in the market risk of Vietnam hardware firms during the post-low inflation period 2015-2017. First, by using quantitative combined with comparative data analysis method, we find out the risk level measured by equity beta mean in the hardware industry is acceptable, i.e it is little lower than (<) 1. Then, one of its major findings is the comparison between risk level of hardware industry during the financial crisis 2007-2009 compared to those in the post-low inflation time 2015-2017. In fact, the research findings show us market risk fluctuation, measured by asset and equity beta var, during the post-low inflation time has increased considerably. Finally, this paper provides some ideas that could provide companies and government more evidence in establishing their policies in governance. This is the complex task but the research results shows us warning that the market risk volatility might be higher during the post-low inflation period 2015-2017. And our conclusion part will recommend some policies and plans to deal with it. Finding new potential markets and credit and financing policies are among directions for hardware companies.
Keywords: risk management, asset beta, financial crisis, hardware industry, policy JEL: G00, G390, C83
Pages: 552-558WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 16, 2019, Art. #62