The impact of foreign ownership on dividend policy : The case of listed companies in HOSE
Abstract
The main purpose of this research is to study the relationship between
foreign ownership and cash dividend of listed companies that have more than 5
percent ownership in HOSE.
The sample consisted of 163 firms with 5% to 49% foreign ownership
listed in Hochiminh Stock Exchange for the period 2008-2012. Random effect model
is used to test the hypotheses.
The results show that foreign ownership has no significant relationship
with dividend payout ratio in term of cash. Moreover, the results also found that
firms’ size has negative association with dividend payout ratio. This is unexpected
from the transaction cost theory and agency cost theory.
Keywords: foreign ownership, dividend policy, cash.