The Effects of Dividend Payout Ratio and Ownership Structure on Stock Prices: The Case of Consumer Goods Companies in Vietnam

Abstract

The study uses dividend theory and agency cost theory to test the impacts of dividend payout ratio and ownership structure on stock prices. The panel data regression approach was used to analyze data of 39 consumer goods companies listed on the Ho Chi Minh Stock Exchange (HOSE) during 2009 - 2020. The results show that the dividend payout ratio and stock price have a positive relationship with the stock market price while the state ownership rate has a negative effect on the stock market price. Besides, financial indicators, such as earnings/share (EPS), current solvency (CP), company size (SIZE), listing time (TIME), and controllability (POS) also affect the price of shares traded on the stock market. This finding is one of the most important contributions to make appropriate investment decisions for investors.