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- Title
Effects of Dividend Policy on the Value of Listed Companies: Evidence from Vietnam.
- Authors
Loc Dong Truong; Tran My Ngo; Ngan Ngoc Huynh
- Abstract
The objective of this study is to enrich the literature by investigating the effects of dividend policies on the value of listed companies in Vietnam. Data used in this study consists of 262 listed companies in Ho Chi Minh Stock Exchange (HOSE) for the period from 2016 to 2018. Using the fixed effects model (FEM), the empirical findings confirm the dividend payout ratio has a positive relationship with the value of the listed companies. This finding supports the birdin-hand theory that investors prefer to receive dividends in cash rather than capital gains in the future. In addition, this study finds that dividend payment methods significantly affect the value of listed companies. In fact, the cash dividend positively affects the value of the listed companies. This evidence is consistent with the signaling theory that payment for dividends in cash is a good signal from the companies.
- Subjects
VIETNAM; DIVIDEND policy; HO Chi Minh, 1890-1969; FIXED effects model; INVESTORS; CAPITAL gains; PAYMENT
- Publication
SCMS Journal of Indian Management, 2023, Vol 20, Issue 2, p54
- ISSN
0973-3167
- Publication type
Article