Financial Risk Management in Case of Viet Nam Real Estate Industry under the Impacts of Competitors and Leverage during and after the Global Crisis

Risk management ocvering financial risk management is really necessary in many kinds of firms in
recent years. Financial risk in real estate industry has become a hot issue during and after the clobal
crisis 2007-2011. In developing countries such as Vietnam, financial risk management via measuring
market risk, is among risk tools to present risk policies for companies and government.
Using a two (2) factors model, this chapter analyzes the impacts of both financial leverage and the
size of firms’ competitors in the real estate industry on the market risk level of 45 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 keeping approximate size as
current (measured by equity beta var of 0,195).
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 slightly smaller (measured by equity beta
value of 0,736).
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.