The Risk Level of Viet Nam Tourism Industry Under Financial Leverage During and After The Global Crisis 2009-2011

This paper evaluates the impacts of external financing on market risk for the listed firms in the Viet nam tourism industry, esp. during and after the financial crisis 2007-2009. First of all, by using quantitative and analytical methods to estimate asset and equity beta of total 10 listed companies in Viet Nam tourism 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 decreases much more if leverage decreases down to 20%. Third, by changing leverage in 3 scenarios, we recognized the dispersion of risk level, measured by equity beta var of 0,767, increases if the leverage increases to 30% whereas decreases to 0,038 if leverage decreases to 20%. But the dispersion measured by asste beta var decreases to 0,473 (leverage up 30%), showing leverage efficiency. Finally, this paper provides some outcomes that could provide companies and government more evidence in establishing their policies in governance.