Furthermore, in Vietnam, the construction and innovation process is taking place strongly. Therefore, financial decisions in this field always need risk assessments to control risk in general and equity risk in particular. At the same time, the investment items of enterprises in this industry have strategies for long-term development. Because the asset structure is mainly in long-term assets when the facilities items account for a large proportion of capital. Companies whose financial decisions affect equity risk, in the long run, are of great interest to businesses in the industry, construction, and real estate investments. The different benefits between CEO and business ownership or shareholders will impact financial decisions on equity risk in different economic environments and other types of companies. This study focuses mainly on agency theory to explain the relationship between financial decisions and equity risk. Besides that, Zopounidis and Doumpos used the factor "Multi-criteria decision support" to help make financial decisions by assessing aspects such as company operations, investments, financial issues, and credit The authors have pointed out the advantages of this technique in financial decision making. Most studies show a close relationship between financial decisions such as the decision on capital source, investment capital, dividend payout ratio on equity risk. Many studies have been conducted to assess the impact of financial decisions on equity risk. However, the cause that companies encounter often comes from a poor financial management strategy. It is often due to several reasons: wasting capital, over-investment or under-investment, and poor cash flow planning makes capital turnover worse. But failure will bring risks to businesses. Financial decisions can be suitable regarding expected profits but can also bring about failures. The financial decisions of management in the enterprise aim to bring more profit and avoid controllable risks. Therefore, this is also an essential criterion in the investment decisions of investors in the market. This beta index indicates whether a portfolio of stocks has a high or low level of risk compared to the market. The criterion to assess the level of risk for each stock on the market is described by the beta or equity risk index. At the same time, some investors want low returns with a medium level of risk. In particular, some investors prefer stocks or groups of industries with a high level of risk to expect greater returns. Different investors have different perspectives and risk exposures when making investment decisions. From this result, the authors also provide implications to help investors and corporation managers make decisions according to their goals based on signs of financial decisions.įor listed companies, investors always pay special attention to the volatility of stocks on the market. Furthermore, this study shows that agency theory does not exist in the relationship between financial decisions and equity risk in industry-construction enterprises in Vietnam. The data analysis results show that investment decisions do not affect equity risk, working capital decisions have a positive impact on equity risk, and funding decisions have a negative impact on equity risk. Research and analysis of panel data with generalized least squares (GLS) via industry construction companies listed on the Vietnam Stock Exchange from 2015 to 2019. The equity risk is represented by beta in firms. The factors representing financial decisions include investment decisions, working capital decisions, and funding decisions. This study was conducted to determine the impact of financial decisions on equity risk in enterprises.
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