The Measurement of Impacts of External Financing on The Risk Level of Viet Nam Natural Gas and Oil Industry During and After The Global Crisis 2007-2011
This research paper analyzes the impacts of external financing on market risk for the listed firms in the Viet nam natural gas and oil industries, esp. after the financial crisis 2007-2009. First, by using quantitative and analytical methods to estimate asset and equity beta of total 15 listed companies in Viet Nam natural gas and oil 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 leverage (in 2011 financial reports, 30% up and 20% down), we recognized that the risk level, measured by equity and asset beta mean, decreases when leverage increases to 30% and vice versa. Third, by changing leverage in 3 scenarios, we recognized the dispersion of risk level increases (measured by equity beta var) if the leverage increases to 30%. Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.
Keywords: Equity Beta, Financial Structure, Financial Crisis, Risk, External Financing, Natural Gas and Oil Industry.