Open AccessThe effects of dividend policy to stock prices of listed companies in Vietnam stock market
Author(s) -
Thị Lam Hồ,
Thùy Phương Trâm Hồ
Publication year - 2022
Publication title -
tài chính-marketing
Language(s) - English
Resource type - Journals
ISSN - 1859-3690
DOI - 10.52932/jfm.vi60.5
Subject(s) - dividend policy , dividend , business , stock market , stock (firearms) , panel data , stock exchange , monetary economics , investment decisions , restricted stock , financial economics , financial system , finance , economics , behavioral economics , econometrics , mechanical engineering , paleontology , horse , engineering , biology
Dividend policy is one of the most important policies in corporate finance management. Understanding the impact of dividend policy on the distribution of profits, corporate value and thus on the stock price is important for business managers to make policies and for investors to make investment decisions. This study is conducted to evaluate the impact of dividend policy on share prices for companies listed on Vietnam’s stock market in the period from 2010 to 2018, based on the availability of continuous dividend payment data. Using the FGLS method with panel data of 100 companies listed on the HoSE and HNX, we find evidence of the impact of dividend policy on stock prices, supporting supports the bird in the hand and the signal detection theories. The findings of this study help to suggest a few recommendations for business managers and investors.