IDEAS home Printed from https://ideas.repec.org/a/ids/afasfa/v11y2021i5p672-690.html
   My bibliography  Save this article

Dividend policy and stock price: evidence from Vietnam

Author

Listed:
  • Dinh Bao Ngoc
  • Nguyen Chi Cuong

Abstract

We investigate the impact of dividend policy on the stock price in Vietnam. Firstly, in order to quantify the immediate effects of dividend policy, 1,738 observations of dividend-related events from 403 listed companies during the period 2008 to 2015 are chosen and the event study methodology is used to estimate abnormal returns around the announcement date and the ex-dividend date. Secondly, in order to quantify the long-run impact of dividend policy, panel data derived from 108 listed companies (809 observations) is analysed by using fixed effect model (FEM) and random effect model (REM). Our results show that the effect of dividend announcement on the stock price is positive around the announcement date. For the long-term impact, the results indicate a significantly negative relationship between payout ratio (PAYOUT), dividend per share (DPS) and stock price volatility, and a positive relationship between dividend yield (DY) and stock price volatility of the companies.

Suggested Citation

  • Dinh Bao Ngoc & Nguyen Chi Cuong, 2021. "Dividend policy and stock price: evidence from Vietnam," Afro-Asian Journal of Finance and Accounting, Inderscience Enterprises Ltd, vol. 11(5), pages 672-690.
    • Handle: RePEc:ids:afasfa:v:11:y:2021:i:5:p:672-690
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=119477
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:afasfa:v:11:y:2021:i:5:p:672-690. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=214 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.