Factors affecting firm’s propensity to pay dividends: Evidence from Vietnam’s listed companies
Focusing on non-financial listed firms on Ho Chi Minh Stock Exchange of Vietnam, we examine factors that affects firms’ propensity to pay dividends during 2009-2015. Our results suggest that small firms incline towards dividends as a signal of good performance to investors to raise more equity. In a...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
HDV INSER., JSC
2016-11-01
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| Series: | Journal of International Economics and Management |
| Subjects: | |
| Online Access: | https://jiem.ftu.edu.vn/index.php/jiem/article/view/154 |
| _version_ | 1819279681296269312 |
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| author | Do Quyen Nguyen Quang Huy Bui |
| author_facet | Do Quyen Nguyen Quang Huy Bui |
| author_sort | Do Quyen Nguyen |
| collection | DOAJ |
| description | Focusing on non-financial listed firms on Ho Chi Minh Stock Exchange of Vietnam, we examine factors that affects firms’ propensity to pay dividends during 2009-2015. Our results suggest that small firms incline towards dividends as a signal of good performance to investors to raise more equity. In addition, dividend policies are not stable over time and the smoothing effect dividend policies are less apparent. Moreover, foreign investors have little power in monitoring managers so they use dividend as a tool to control for the agency problems and mitigate free cash flow problem. Overall, the agency theory, signaling theory and life cycle hypothesis are found to help explain main factors affecting firms’ dividend policies. |
| first_indexed | 2024-12-24T00:31:46Z |
| format | Article |
| id | doaj.art-834ea050f4ad4e92807bf9aaa6554e21 |
| institution | Directory Open Access Journal |
| issn | 2615-9856 |
| language | English |
| last_indexed | 2024-12-24T00:31:46Z |
| publishDate | 2016-11-01 |
| publisher | HDV INSER., JSC |
| record_format | Article |
| series | Journal of International Economics and Management |
| spelling | doaj.art-834ea050f4ad4e92807bf9aaa6554e212022-12-21T17:24:15ZengHDV INSER., JSCJournal of International Economics and Management2615-98562016-11-01877799154Factors affecting firm’s propensity to pay dividends: Evidence from Vietnam’s listed companiesDo Quyen NguyenQuang Huy BuiFocusing on non-financial listed firms on Ho Chi Minh Stock Exchange of Vietnam, we examine factors that affects firms’ propensity to pay dividends during 2009-2015. Our results suggest that small firms incline towards dividends as a signal of good performance to investors to raise more equity. In addition, dividend policies are not stable over time and the smoothing effect dividend policies are less apparent. Moreover, foreign investors have little power in monitoring managers so they use dividend as a tool to control for the agency problems and mitigate free cash flow problem. Overall, the agency theory, signaling theory and life cycle hypothesis are found to help explain main factors affecting firms’ dividend policies.https://jiem.ftu.edu.vn/index.php/jiem/article/view/154dividend policiesthe agency theorysignaling theorylife cycle hypothesis |
| spellingShingle | Do Quyen Nguyen Quang Huy Bui Factors affecting firm’s propensity to pay dividends: Evidence from Vietnam’s listed companies Journal of International Economics and Management dividend policies the agency theory signaling theory life cycle hypothesis |
| title | Factors affecting firm’s propensity to pay dividends: Evidence from Vietnam’s listed companies |
| title_full | Factors affecting firm’s propensity to pay dividends: Evidence from Vietnam’s listed companies |
| title_fullStr | Factors affecting firm’s propensity to pay dividends: Evidence from Vietnam’s listed companies |
| title_full_unstemmed | Factors affecting firm’s propensity to pay dividends: Evidence from Vietnam’s listed companies |
| title_short | Factors affecting firm’s propensity to pay dividends: Evidence from Vietnam’s listed companies |
| title_sort | factors affecting firm s propensity to pay dividends evidence from vietnam s listed companies |
| topic | dividend policies the agency theory signaling theory life cycle hypothesis |
| url | https://jiem.ftu.edu.vn/index.php/jiem/article/view/154 |
| work_keys_str_mv | AT doquyennguyen factorsaffectingfirmspropensitytopaydividendsevidencefromvietnamslistedcompanies AT quanghuybui factorsaffectingfirmspropensitytopaydividendsevidencefromvietnamslistedcompanies |