Determinants of Dividend Payout Policy A Case of Nonfinancial Listed Companies in Vietnam

Trang Thi Van Do

Article Sidebar

PDF
Published Dec 15, 2016

Article Details

How to Cite
DO, Trang Thi Van. Determinants of Dividend Payout Policy A Case of Nonfinancial Listed Companies in Vietnam. VNU JOURNAL OF ECONOMICS AND BUSINESS, [S.l.], v. 32, n. 5E, dec. 2016. ISSN 2734-9845. Available at: <https://js.vnu.edu.vn/EAB/article/view/4059>. Date accessed: 23 dec. 2024.
ABNT APA BibTeX CBE EndNote - EndNote format (Macintosh & Windows) MLA ProCite - RIS format (Macintosh & Windows) RefWorks Reference Manager - RIS format (Windows only) Turabian
Issue
Vol 32 No 5E
Section
Short communication

Main Article Content

Abstract

This research examines the determinants that affect the dividend payout ratio of 156 listed companies in the Vietnamese security market during 2009 and 2014. This study considered the influences of ten independent variables including free cash flow, sales growth, company size, financial leverage, profitability and liquidity. The empirical results show that there are three factors having a significant relationship with the dividend payout ratio. Both the return on equity and the financial leverage variables are statistically and negatively significant with the dividend payout ratio; earnings per share are not clearly significant with the dividend payout ratio. Moreover, in the effect on the dividend payout ratio of the different industry sectors, the storage and food industry has a significant relationship with dividend payout ratio and three industries including the agricultural-forestry-fishery industry; mining industry; manufacturing industry statistically have dividend payout ratios higher than other industries.

Keywords: Payout policy, dividend payout ratio, fixed effect model, random effect model.

References

[1] Al-Malkawi, H. A. N., “Factors influencing corporate dividend decision: Evidence from Jordanian panel data”, International Journal of Business, 13 (2008) 2, 177.
[2] Al-Twaijry, A. A., “Dividend policy and payout ratio: Evidence from the Kuala Lumpur stock exchange”, The Journal of Risk Finance, 8 (2007) 4, 349-363.
[3] Ahmed, H., & Javid, A. Y., “The determinants of dividend policy in Pakistan”, International Research Journal of Finance and Economics, 29 (2009) 1, 110-125.
[4] Rafique, M., “Factors affecting dividend payout: Evidence from listed non-financial firms of Karachi stock exchange”, Business Management Dynamics, 1 (2012) 11, 76-92.
[5] Lintner, J., “Distribution of incomes of corporations among dividends, retained earnings, and taxes”, The American Economic Review, 46 (1956) 2, 97-113.
[6] Miller, M. H., & Modigliani, F., “Dividend policy, growth, and the valuation of shares”, The Journal of Business, 34 (1961) 4, 411-433.
[7] Jensen, M. C., & Meckling, W. H., “Theory of the firm: Managerial behavior, agency costs and ownership structure”, Journal of Financial Economics, 3 (1976) 4, 305-360.
[8] Bhattacharya, S., “Nondissipative signaling structures and dividend policy”, The Quarterly Journal of Economics, 95 (1980) 1, 1-24.
[9] John, K., & Williams, J., “Dividends, dilution, and taxes: A signaling equilibrium”, The Journal of Finance, 40 (1985) 4, 1053-1070.
[10] Baker, M., & Wurgler, J., “A catering theory of dividends”, The Journal of Finance, 59 (2004) 3, 1125-1165.
[11] Miller, M. H., & Scholes, M. S., “Dividends and taxes”, Journal of Financial Economics 6 (1978) 4, 333-364.
[12] Fama, E. F., & French, K. R., “Disappearing dividends: Changing firm characteristics or lower propensity to pay?”, Journal of Financial Economics, 60 (2001) 1, 3-43.
[13] Amidu, M., & Abor, J., “Determinants of dividend payout ratios in Ghana”, The Journal of Risk Finance, 7 (2006) 2, 136-145.
[14] Mehta, A., “An empirical analysis of determinants of dividend policy-evidence from the UAE companies”, Global Review of Accounting and Finance, 3 (2012) 1, 18-31.
[15] Chen, J., & Dhiensiri, N., “Determinants of dividend policy: The evidence from New Zealand”, International Research Journal of Finance and Economics, 34 (2009), 18-28.
[16] Chay, J. B., & Suh, J., “Payout policy and cash-flow uncertainty”, Journal of Financial Economics, 93 (2009) 1, 88-107.
[17] Rozeff, M. S., “Growth, beta and agency costs as determinants of dividend payout ratios”, Journal of Financial Research 5 (1982) 3, 249-259.
[18] Myers, S. C., & Majluf, N. S., “Corporate financing and investment decisions when firms have information that investors do not have”, Journal of Financial Economics, 13 (1984) 2, 187-221.
[19] Jensen, M. C., “Agency cost of free cash flow, corporate finance, and takeovers”, American Economic Review, 76 (1986) 2.
[20] Fama, E. F., & French, K. R., “Testing trade-off and pecking order predictions about dividends and debt”, Review of Financial Studies, 15 (2002) 1, 1-33.
Hausman, J. A., “Specification tests in econometrics”, Econometrica: Journal of the Econometric Society, 46 (1978) 6, 1251-1271.