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Dividend Policy Behavior in Emerging Stock Markets: Evidence from Vietnamese Stock Market

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  • Quoc Trung Tran
  • Thi Thu Ha Nguyen

Abstract

Several prior studies find that firms pursue a long-term dividend target payout ratio with a fairly standardized speed of adjustment in developed markets. However, some studies conducted in emerging markets show strange findings that firms have target dividend payout ratios but they fail to follow stable dividend polices. This study examines dividend policy behavior in Vietnamese stock market, an emerging stock market without mandatory dividend payment using fixed effects regression for panel data. The research results support the partial adjustment model that firms in Vietnamese stock market have stable dividend policy behavior.

Suggested Citation

  • Quoc Trung Tran & Thi Thu Ha Nguyen, 2014. "Dividend Policy Behavior in Emerging Stock Markets: Evidence from Vietnamese Stock Market," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 5(4), pages 85-89, October.
    • Handle: RePEc:jfr:ijfr11:v:5:y:2014:i:4:p:85-89
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    References listed on IDEAS

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    Cited by:

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    2. Fernau, Erik & Hirsch, Stefan, 2019. "What drives dividend smoothing? A meta regression analysis of the Lintner model," International Review of Financial Analysis, Elsevier, vol. 61(C), pages 255-273.
    3. Sepúlveda Velásquez, Jorge & Tapia Griñen, Pablo & Pastén Henríquez, Boris, 2023. "Mandatory dividends and economic policy uncertainty: A challenge for investment opportunities," Finance Research Letters, Elsevier, vol. 52(C).
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    5. Urszula Mrzyglod & Sabina Nowak & Magdalena Mosionek-Schweda & Jakub M. Kwiatkowski, 2021. "What drives the dividend decisions in BRICS countries?," Oeconomia Copernicana, Institute of Economic Research, vol. 12(3), pages 593-629, September.
    6. A. Olayiwola, John & M. Ajide, Folorunsho, 2019. "Do Oil Price and Institutional Quality Matter for Dividend Policy in Nigeria?," Working Papers 12, Department of Economics, University of Ilorin.

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