Dividend policy and stock price volatility in an emerging market: Does ownership structure matter?
This paper examines the impacts of dividend policy and ownership structure on stock price volatility in the Vietnamese market. The study also tests for the moderating effect of foreign/state ownership on the dividend policy–price volatility relation. The authors use a comprehensive panel dataset of...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2019-01-01
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| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.1080/23322039.2019.1637051 |
| _version_ | 1819296847403941888 |
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| author | Thi Kieu Hoa Phan Nam Hoai Tran |
| author_facet | Thi Kieu Hoa Phan Nam Hoai Tran |
| author_sort | Thi Kieu Hoa Phan |
| collection | DOAJ |
| description | This paper examines the impacts of dividend policy and ownership structure on stock price volatility in the Vietnamese market. The study also tests for the moderating effect of foreign/state ownership on the dividend policy–price volatility relation. The authors use a comprehensive panel dataset of non-financial firms listed publicly on the Ho Chi Minh Stock Exchange and Hanoi Stock Exchange over the period from 2008 to 2015. Employing a set of different econometric methods, the robust results indicate that dividend yield mitigates stock price volatility in the emerging market of Vietnam. The price-stabilising effect of foreign (and state) involvement has no longer been significant after the global financial crisis. Also, the study finds no moderating effect of ownership structure on the relation between dividend yield and price volatility during the sample period. The finding of the influence of dividend policy on stock market risk has critical implications for the investment landscape in emerging markets. |
| first_indexed | 2024-12-24T05:04:37Z |
| format | Article |
| id | doaj.art-1614925fa6cc41c1a532151f30767b36 |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-12-24T05:04:37Z |
| publishDate | 2019-01-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-1614925fa6cc41c1a532151f30767b362022-12-21T17:13:51ZengTaylor & Francis GroupCogent Economics & Finance2332-20392019-01-017110.1080/23322039.2019.16370511637051Dividend policy and stock price volatility in an emerging market: Does ownership structure matter?Thi Kieu Hoa Phan0Nam Hoai Tran1University of Economics and Law, Vietnam National UniversityUniversity of Economics Ho Chi Minh CityThis paper examines the impacts of dividend policy and ownership structure on stock price volatility in the Vietnamese market. The study also tests for the moderating effect of foreign/state ownership on the dividend policy–price volatility relation. The authors use a comprehensive panel dataset of non-financial firms listed publicly on the Ho Chi Minh Stock Exchange and Hanoi Stock Exchange over the period from 2008 to 2015. Employing a set of different econometric methods, the robust results indicate that dividend yield mitigates stock price volatility in the emerging market of Vietnam. The price-stabilising effect of foreign (and state) involvement has no longer been significant after the global financial crisis. Also, the study finds no moderating effect of ownership structure on the relation between dividend yield and price volatility during the sample period. The finding of the influence of dividend policy on stock market risk has critical implications for the investment landscape in emerging markets.http://dx.doi.org/10.1080/23322039.2019.1637051ddividend policyoownership structurestate ownershipforeign ownershipemerging markets |
| spellingShingle | Thi Kieu Hoa Phan Nam Hoai Tran Dividend policy and stock price volatility in an emerging market: Does ownership structure matter? Cogent Economics & Finance ddividend policy oownership structure state ownership foreign ownership emerging markets |
| title | Dividend policy and stock price volatility in an emerging market: Does ownership structure matter? |
| title_full | Dividend policy and stock price volatility in an emerging market: Does ownership structure matter? |
| title_fullStr | Dividend policy and stock price volatility in an emerging market: Does ownership structure matter? |
| title_full_unstemmed | Dividend policy and stock price volatility in an emerging market: Does ownership structure matter? |
| title_short | Dividend policy and stock price volatility in an emerging market: Does ownership structure matter? |
| title_sort | dividend policy and stock price volatility in an emerging market does ownership structure matter |
| topic | ddividend policy oownership structure state ownership foreign ownership emerging markets |
| url | http://dx.doi.org/10.1080/23322039.2019.1637051 |
| work_keys_str_mv | AT thikieuhoaphan dividendpolicyandstockpricevolatilityinanemergingmarketdoesownershipstructurematter AT namhoaitran dividendpolicyandstockpricevolatilityinanemergingmarketdoesownershipstructurematter |