Whether The Risk Level of Viet Nam Real Estate Firms under the Different Changing Tax Rates Increase or Decrease So Much?

Abstract

Under the volatility of stock price, and changes in macro factors such as inflation and interest rates, the real estate market in Viet Nam has entered the recession stage after the year 2008 and after the bubbles in housing prices. This study analyzes the impacts of tax policy on market risk for the listed firms in the real estate industry as it becomes necessary.

First, by using quantitative and analytical methods to estimate asset and equity beta of total 45 listed companies in Viet Nam real estate 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 0,918, 0,927 and 0,934.

Third, by changing tax rates in 3 scenarios (25%, 20% and 28%), we recognized both equity and asset beta mean values have positive relationship with the increasing level of tax rate.

Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.