The Impact of Economic Policy Uncertainty on Cash Dividends: Evidence from Vietnam

Abstract

Purpose: This study aims to assess the impact of global economic policy uncertainty on cash dividends in Vietnam.
Design/methodology/approach: The sample consists of 291 firms listed on the Ho Chi Minh City Stock Exchange (HOSE) over the period 2010–2024. The study employs Probit estimation, Ordinary Least Squares (OLS), and the Fixed Effects Model with robust standard errors (FEM with robust SEs) to examine the effect of global economic policy uncertainty on cash dividends.
Findings: The results indicate that global economic policy uncertainty exerts a negative impact on cash dividends. Furthermore, when the sample is classified by firm size, the adverse effect is found to be stronger among firms in the medium and large size quantiles.
Originality/value: This is the first study to investigate the impact of global economic policy uncertainty on cash dividends in Vietnam.