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

Duy Nguyen (), Mai Bui () and Dung Do ()
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Duy Nguyen: Becamex Business School, Eastern International University
Mai Bui: Becamex Business School, Eastern International University
Dung Do: Becamex Business School, Eastern International University

Annals of Economics and Finance, 2019, vol. 20, issue 1, 123-136

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.

Keywords: Dividend policy; Dividend Yield; Dividend Payout; Share Price Volatility; Emerging Markets (search for similar items in EconPapers)
JEL-codes: G32 G35 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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