Ownership Structure and Cash Dividend Policy: Evidence from Vietnamese Listed Commercial Banks

Abstract

This research is proposed to consider how ownership structure affects dividend policy in Vietnamese listed commercial banks using quantitative research methods, namely OLS, FEM, REM and FGLS. Data was collected from annual financial reports of commercial banks and market data on Fiinpro at Vietnamese commercial banks from 2012 to 2022. The results show that FEM is much better for the research; however, the FEM model has heteroscedasticity and autocorrelation. In this case, the author uses the FGLS model instead. The results show that the ownership percentage of foreign investors, the state ownership ratio, the return on equity ratio, and the market capitalization value over the book value of equity ratio positively affect the dividend payout ratio on par value. In contrast, the size of total assets has a negative effect on the dividend ratio. The author offers some suggestions for improving the dividend policy for commercial banks and state authorities based on the research results. Hence, the result can be used as recommendations for adapting the dividend policy at commercial banks to the ownership structures.