Factors affecting dividend payment policy of listed companies in Vietnam stock market

Abstract

Dividend policy decisions is one of the three most important decisions in the financial governance firm category (besides
the investment decisions and financing decisions). Dividend policy has a huge impact on the operation, survival and
development of the business in many ways. Identify factors affecting the dividend policy will help enterprises build
yourself an appropriate dividend policy. This study focuses on analyzing the factors affecting the dividend policy of the
companies listed on Vietnam stock market by a combination of research both quantitative and qualitative. At the same
time, the paper launched the current gaps and some recommendations as well as a number of reference solution can
help businesses choose the appropriate dividend policy. The paper shows that there are three specific factors that affect
the rate of dividend payment in cash of the companies listed on the HNX is the rate of return of equity (ROE), financial
leverage (LEV) and earnings per share (EPS), in which the influence of EPS was negligible. Also when considering the
impact of each sector to the rate of dividend payments, the model also shows that in terms of other factors constant,
the service sector and food storage have an impact on rates pay dividends. Along with that, when considering the
dummy variable model, it can be seen that the effect of in agriculture, forestry and industry; processing industry groups,
manufacturing; mining sector has an impact on the rate of dividend payment stronger service sector and food storage.