tailieunhanh - Determinants of dividend payments of non-financial listed companies in Ho Chi Minh stock exchange

This research aims to examine the determinants of dividend payments of non-financial listed companies in the Ho Chi Minh Stock Exchange (HOSE) in the period 2007 to 2012. Using the Pooled Ordinary Least Square and the Fixed effect model (FEM) for panel data, the authors found that in HOSE, the profitability of firms is statistically significant and negatively related to payout ratio (DPR). | VNU Journal of Economics and Business Vol. 29, No. 5E (2013) 16-33 Determinants of Dividend Payments of Non-financial Listed Companies in Ho Chi Minh Stock Exchange Nguyễn Kim Thu*, Lê Vĩnh Triển, Dương Thúy Trâm Anh, Hoàng Thành Nhơn * International University Quarter 6, Linh Trung Ward, Thu Duc Dist., HCMC Received 20 December 2013 Revised 20 December 2013; Accepted 30 December 2013 Abstract: This research aims to examine the determinants of dividend payments of non-financial listed companies in the Ho Chi Minh Stock Exchange (HOSE) in the period 2007 to 2012. Using the Pooled Ordinary Least Square and the Fixed effect model (FEM) for panel data, the authors found that in HOSE, the profitability of firms is statistically significant and negatively related to payout ratio (DPR). In other words, companies tend to plow back more earnings when profitability increases. Moreover, leverage has a positive and statistically significant relationship with DPR. There are no statistically significant differences in DPRs among accommodation services, mineral ore exploitation, investment consulting services and related services, supporting services, scientific and technical services and the other services industry. Meanwhile, DPRs in the remaining industries are statistically lower than those of the above-mentioned industries. Keywords: Dividend policy, listed companies, HOSE. 1. Introduction * become more important for Vietnamese companies. The decision of whether a company should pay out all its net income as dividends, or plow back part or all of its net income for reinvestment, is the key decision. If companies decide to keep a high dividend payout ratio, they may please shareholders, especially when other channels of investment such as real estate turn sour and deposit rates plummet. However, a high dividend payout policy can be costly in case the companies have to search for external financing for their investment projects. A low (or even no) dividend payout policy, on

• Tài chính doanh nghiệp
• Determinants of dividend payments of Non financial
• Ho Chi Minh stock xxchange
• Dividend policy listed companies
• Among accommodation services