Using a two (2) factors model, this research paper analyzes the impacts of both financial leverage and the size of firms’ competitors in the construction industry on the market risk level of 104 listed companies in this category. This paper founds out that the risk dispersion level in this sample study could be minimized in case financial leverage decreases down to 20% and the competitor size doubles (measured by equity beta var of 0,253). Beside, the empirical research findings show us that the risk level could be reduced when financial leverage increases up to 30% and the size of competitor doubles (measured by equity beta value of 0,934). Last but not least, this paper illustrates calculated results that might give proper recommendations to relevant governments and institutions in re-evaluating their policies during and after the financial crisis 2007-2011.
After the financial crisis 2007-2009, this research paper evaluates the impacts of external financing on market risk for the listed firms in the Viet nam software industry. First, by using quantitative and analytical methods to estimate asset and equity beta of total 6 listed companies in Viet Nam software 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 it increases if leverage decreases down to 20%. Third, by changing leverage in 3 scenarios, we recognized the dispersion of risk level, measured by equity and asset beta var, increases slightly 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.