To What Extent Corporate Tax Policy Changes Impact on the Risk Level of Viet Nam Software and Hardware Companies
The global crisis 2007-2011 has wide effect on many economies including Viet Nam; hence, this study analyzes the impacts of tax policy on market risk for the listed firms in the Viet Nam hardware and software industry as it becomes necessary. First, by using quantitative and analytical methods to estimate asset and equity beta of total 22 listed companies in Viet Nam hardware and software 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 0,740, 0,725 and 0,746 (minimum at the rate 25%).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 beta mean decreases if tax rate increases from 20% to 25%, then goes up if tax rate goes up to 28% while asset beta mean value increases if tax rate increases from 20% to 25%, then goes down if tax rate goes up to 28%. Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.
Pham Tuan Anh
Thuongmai University, Hanoi, Vietnam.
Dinh Tran Ngoc Huy
Banking University, HCMC – GSIM, International University of Japan, Japan.
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