IJSRST151413 | Received: 07 October 2015 | Accepted: 25 October 2015 | September-October 2015 [(1)4: 151-156] © 2015 IJSRST | Volume 1 | Issue 4 | Print ISSN: 2395-6011 | Online ISSN: 2395-602X Themed Section: Science and Technology 151 A One Factor Model Affects the Risk Level of Viet Nam Hardware Industry During and After the Global Crisis 2007-2011 DInh Tran Ngoc Huy Banking University, HCMC – GSIM, International University of Japan, Japan ABSTRACT Using a one factor model, this paperwork estimates the impacts of the size of firms’ competitors in the hardware industry on the market risk level, measured by equity and asset beta, of 22 listed companies in this category. This study identified that the risk dispersion level in this sample study could be minimized in case the competitor size doubles (measured by equity beta var of 0,678). Besides, the empirical research findings show us that asset beta min value decreases from 0,054 to 0,030 when the size of competitor doubles. Last but not least, most of beta values are acceptable. Ultimately, 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. Keywords: Risk Management, Competitive Firm Size, Market Risk, Asset and Equity Beta, Hardware Industry I. INTRODUCTION Studies reveal that competition has affected business risk and return. Eugene F., and French, Kenneth R., (2004) also indicated in the three factor model that “value” and “size” are significant components which can affect stock returns. They also mentioned that a stock’s return not only depends on a market beta, but also on market capitalization beta. The market beta is used in the three factor model, developed by Fama and French, which is the successor to the CAPM model by Sharpe, Treynor and Lintner. Pagano and Mao (2007) stated that An intermediated market can therefore remain viable in the face of competition from a possibly faster, non- intermediated market as long as the specialist can generate revenue for the above services that covers his/her costs associated with asymmetric information, order processing, and inventory management. As Luis E. Peirero (2010) pointed, the task of estimating cost of equity in emerging markets is more difficult because of problems such as collecting data in short periods. Together with financial system development and the economic growth, throughout many recent years, Viet Nam hardware industry is considered as one of active economic sectors, which has some positive effects for the economy. Additionally, financial risk and reactions has become an issue after the global crisis 2007-2009 which has some certain impacts on the whole Viet nam economy, and specifically, the Viet Nam hardware industry. Hence, this research paper analyzes market risk under a one factor model of these listed firms during this period. The purpose of this study is to find out how much market risk for this industry in changing contexts of competitors. Therefore, this paperwork will explain not only the relationship between risk and competitor size, but also presents how much risk for the hardware industry in each competitor scenario. It finds out competition or competitor size definitely has certan effects on market risk of listed hardware firms. This paper is organized as follow. The research issues and literature review will be covered in next sessions 2 and 3, for a short summary. Then, methodology and conceptual theories are introduced in session 4 and 5. Session 6 describes the data in empirical analysis. Session 7 presents empirical results and findings. Next, session 8 covers the analytical results. Then, session 9