Beta of Viet Nam Listed Computer and Electrical Company Groups during and after the Financial Crisis 2007-2011

Abstract

During and after the financial crisis 2007-2011, the Viet Nam stock market, generally, has unexpected fluctuations and VNI-Index has decreased. Besides, the Viet Nam computer and electrical industry, specifically, has to re-evaluate the risk level.

First, we estimate asset and equity beta of four (4) sub-industrial listed companies in Viet Nam computer and electrical industries by using a proper traditional model. We found out that the mean value of beta of total 64 firms used in this research is around 0,711, which is quite acceptable.

Second, through comparison among four (4) different groups, we find out that the values of beta during the period 2007-2011 of listed hardware companies vary less than those of the rest three (3) listed groups: software, electrical and comm./telecommunication firms.

Finally, this paper provides both internal and external investors, financial institutions, companies and government more evidence in establishing their policies in investments and in governance.