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International Journal of Economic and
Business Management Vol. 2(1), pp. 1–9,
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
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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