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The Relationship between Ownership Structure and Dividend Policy: An Application in Vietnam Stock Exchange

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  • Tran Thi Xuan Anh

    (Finance Faculty, Banking Academy, Hanoi, Vietnam)

  • Le Quoc Tuan

    (Finance Faculty, Banking Academy, Hanoi, Vietnam)

Abstract

This research examines the possible association between ownership structure and Vietnam listed companies’ dividend payout policy over the period of 2009 – 2015. We have investigated 642 listed firms in Hochiminh stock exchange and Hanoi stock exchange, using pannel data analysis. Ownership structure is described with two main sub-variables: ownership concentration and ownership composition. Specifically, the Herfindahl index (or H-index) was applied to measure the level of ownership concentration /dispersion for all major shareholders in the company, including the five biggest investors, corporate institutional investors, the ownership concentration level, and foreign investors. It has been observed that the H-index of all major shareholders has an average of less than 0.5 but the value of the H-index of institutional investors at 0.594 indicates that institutional investors are more likely to be concentrated in the hands of large institutional investors. The result showed linear relationship between institutional ownership and the dividend rate, but not statistically significant for the relationship between managerial ownership and dividend payout ratio.

Suggested Citation

  • Tran Thi Xuan Anh & Le Quoc Tuan, 2019. "The Relationship between Ownership Structure and Dividend Policy: An Application in Vietnam Stock Exchange," Academic Journal of Interdisciplinary Studies, Sciendo, vol. 8(2), pages 131-146, July.
  • Handle: RePEc:vrs:ajinst:v:8:y:2019:i:2:p:131-146:n:15
    DOI: 10.2478/ajis-2019-0025
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    Cited by:

    1. Anis El Ammari, 2021. "Do CEO Duality and Ownership Concentration Impact Dividend Policy in Emerging Markets? The Moderating Effect of Crises Period," IJFS, MDPI, vol. 9(4), pages 1-21, November.
    2. Sunday Olugboyega KAJOLA & Samuel Babatunji ADEDEJI & Joel Adeniyi OKEWALE & Segun Daniel OWOEYE, 2022. "Corporate Board Features And Dividend Policy In Nigerian Banks," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 7(4), pages 242-258.
    3. Bukalska Elżbieta & Zabediuk Myroslava & Mostovenko Nataliia, 2023. "Conflict of interests among shareholders – does it refer to dividend decisions?," Folia Oeconomica Stetinensia, Sciendo, vol. 23(1), pages 16-41, June.

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