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The Relationship Of Dividend Policy and Share Price Volatility: A Case in Vietnam

Author

Listed:
  • Duy T. Nguyen

    (Becamex Business School, Eastern International University)

  • Mai H. Bui

    (Becamex Business School, Eastern International University)

  • Dung H. Do

    (Becamex Business School, Eastern International University)

Abstract

Taking the initiative of debatable relationship between dividend policy and share price volatility and addressing the limitation of statistical model of the previous papers in the context of Vietnam, this paper was conducted to practically test that relationship by additionally controlling some variables. A sample of 141 listed non-finance companies in Ho Chi Minh Stock Exchange from 2011 to 2016 was employed. The paper utilized fixed effect model after thoroughly checking mutlticollinearity, endogeneity and causality problems of the dataset. It reveals that the dividend payout and dividend yield have statistically significantly negative impact on share price volatility.

Suggested Citation

  • Duy T. Nguyen & Mai H. Bui & Dung H. Do, 2019. "The Relationship Of Dividend Policy and Share Price Volatility: A Case in Vietnam," Annals of Economics and Finance, Society for AEF, vol. 20(1), pages 123-136, May.
    • Handle: RePEc:cuf:journl:y:2019:v:20:i:1:nguyenbuido
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    References listed on IDEAS

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    Cited by:

    1. Irton Irton, 2020. "The Influence of dividend policy on sharia stock price volatility:A study on Indonesian stock exchange," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(7), pages 84-92, December.

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    More about this item

    Keywords

    Dividend policy; Dividend Yield; Dividend Payout; Share Price Volatility; Emerging Markets;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy

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