The impact of dividend policy to stock price volatility of companies listed on Vietnam’s stock market

Abstract

This study was to research the relationship between dividend policy and share price volatility with listed in Vietnam
stock market. A sample of 165 companies listed in Hanoi Stock Exchange (HNX) and Ho Chi Minh Stock Exchange
(HOSE) full dividend payment in five year from 2009 to 2013. Using multiple regression model, fixed effect model (FEM)
combine with analysis descriptive statistic for panel data. The empirical result of this study showed significant positive
relationship between dividend yield, dividend payout ration with stock price volatility. Moreover, The cash dividend
yield increase 19,94% led to stock price increase 1%, the dividend payout ration increase 2,9% led to stock price
increase 1%. Combine with the characteristics of the market in Vietnam, the study express suggestion for the financial
manager about policy of profit distribution. Also help investor have overview the impact of dividend policy to stock price
volatility, to support making decision.