Effect of dividend policy on stock price volatility of companies listed on the stock market of Vietnam

Abstract

The decision on dividend policy is considered an important decision in financial management and dividend policy is always an issue attracting the attention of investors. The purpose of this research is to identify the impact of dividend policy on the stock price volatility of companies in the stock market of Vietnam. Understanding this matter helps companies to choose an appropriate dividend policy and at the same time helps investors have an overview to make the most suitable and optimal investment decisions. The research has built a regression model to assess the impact of dividend policy on stock price volatility of companies listed on the stock market in Vietnam. The strength of this research is to use the E-view software in quantitative analysis to build a panel data regression model. At the same time, the researchers used the Hausman test to select the appropriate model compared to other research. Research data is collected using a sample size of 100 companies in all industries (except companies in the banking and finance industry) listed on two stock exchanges HOSE and HNX from 2015 to 2020. With the application of E-view software in quantitative analysis to build table data regression models, the article has built a regression model to determine the relationship and level of impact of dividend policy on the stock price volatility of companies. The research results show that the variables of dividend policy have no impact on stock price volatility, which is totally in contrast to previous studies in Vietnam.