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Dividend policy and stock price volatility

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The panel data derived from 108 listed companies in Vietnam during the period from 2008 to 2015 (809 observations) is analyzed by using Fixed Effect Model (FEM) and Random Effect Model (REM). The results indicate a significantly negative relationship between payout ratio (PAYOUT), dividend per share (DPS) and stock price volatility, and a positive relationship between dividend yield (DY) and stock price volatility of the companies. |