RESEARCH OF FACTORS AFFECTING DIVIDEND POLICY - EVIDENCE FROM VIETNAM

Abstract

This study aims to examine the influence of factors within a business on its
dividend payment policy through a sample of 264 firms listed on the Vietnam
Stock Exchange with 1584 observations over 6 years from 2015 to 2020. The
study measures the impact of five factors on a business's dividend payment
policy, including profitability, firm size, earnings per share ratio, firm risk, and
price-to-earnings ratio. The results show that the two factors profitability and
firm size have a negative impact on dividend payment policy, the factor
earnings per share and price to earnings ratio have a positive impact on
dividend payment policy. The variables in the research model explained 15.35%
of the impact on the company's dividend payment policy. Research results are
important evidence for managers in managing, operating, and mobilizing
capital for firms and for shareholders when making capital investment
decisions in the future.