Open AccessFactors Influencing the Dividend Policy of Vietnamese Enterprises
Author(s) -
Dang Ngoc Hung,
Nguyen Viet Ha,
Dang Thai Binh
Publication year - 2018
Publication title -
asian journal of finance and accounting
Language(s) - English
Resource type - Journals
ISSN - 1946-052X
DOI - 10.5296/ajfa.v10i2.13651
Subject(s) - dividend policy , vietnamese , leverage (statistics) , dividend , profitability index , business , dividend payout ratio , return on assets , monetary economics , financial economics , revenue , economics , accounting , finance , linguistics , philosophy , machine learning , computer science
The article explores the factors affecting company’s dividend policy such as profitability, firm size, financial leverage and growth rate. Data is collected from enterprises listed on the Vietnam securities market in the period of 2006 - 2017 with 2,150 observations. Using the Generalized Least Squares (GLS), the authors have identified two factors that have a positive and significant effect: (i) return on total assets and (ii) firm size. At the same time, research results also show a negative impact of enterprise’s revenue growth rate on the dividend payment ratio. In addition, financial leverage has no impact on company’s dividend policy.