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 International Journal of Economic and Business Management
 

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International Journal of Economic and Business Management Vol. 2(1), pp. 19, April 2014 Academic Research Journals

 

 

Full Length Research

 

Tax Rates Effects on The Risk Level of Listed Viet Nam Insurance Firms During Global Economic Crisis 2007-2009

 

Dinh Tran Ngoc Huy

 

Banking Universisty HCMC, Viet Nam GSIM International University of Japan, Japan. E-mail: dtnhuy2010@gmail.com

 

Accepted 16 April 2014

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 insurance industry as it becomes necessary.
First, by using quantitative and analytical methods to estimate asset and equity beta of total 7 listed companies in Viet Nam insurance 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 -0,147, -0,157 and -0,164.
Third, by changing tax rates in 3 scenarios (25%, 20% and 28%), we recognized both equity and asset beta mean values have negative 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.


Key words : beta, capital structure, economic crisis, risk, tax rate, insurance industry
JEL CLASSIFICATION : G010, G100, G390
 

 

 

 

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