EVALUATING AND SUGGESTING SOME SOLUTIONS TO DIVIDEND POLICY OF THE FIRMS LISTED ON THE HOSE

Abstract

This study has been conducted to evaluate dividend policy of the firms listed on the HOSE; particularly, it has tested the theory of free cash flow based on sample of 100 firms listed on the HOSE in the period 2008 -2012. The result shows that the dividend policy of the firms listed on the HOSE is consistent with the theory of free cash flow. This means that the firms pay dividends or higher dividend than average 47.36% have the largest free cash flow. This study also finds that the firms paydividends or higher dividends are at the small size. Explaining for this, I suggest that small firms should pay dividends or higher dividends because they want to keep the stock price in the context of stock market declining.
Key words: dividend, dividend policy, free cash flow.