Tax Rates Effects on the Risk Level of Listed Viet Nam Natural Gas and Oil Firms During Global Economic Crisis 2007‐2009
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 natural gas and oil industry as it becomes necessary. 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 tax rates (20%, 25% and 28%), we recognized that
there is not large disperse in equity beta values, estimated at 0,516, 0,512 and 0,492.Third,
by changing tax rates in 3 scenarios (20%, 25% 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.