| dc.description.abstract | Dividend policy is a common and widely topic in term of finance and
investment but it still raises a question about the relationship between dividend policy
and share price. Various results from researchers are collected make no consistence.
The purpose of this paper was to examine the relationship between dividend policy and
share price volatility of companies listed on Ho Chi Minh Stock Exchange. A sample of
97 companies listed in HOSE was selected over period of five years from 2008 to 2012.
Sample size is large, it is almost one three of the total listed companies in HOSE so the
results are reliable and valid. The relationship between share price volatility, dependent
variable, with two main independent variables of dividend yield and dividend payout
ratio was tested by regression model. The primarily regression model was expanded by
adding control variables such as size of firm, earnings volatility, long-term debt, and
asset growth. For this purpose, the regression analysis was conducted using the crosssectional least square regression method. This study also used various tests (i.e.
Multicollinearity; Heteroskedasticity; and Model specification tests) using Eviews 6.0.
The empirical result of this result concluded that there are negative relationships
between two independent variables which are dividend yield and dividend payout ratio
with share price volatility but the relationship between dividend yield and share price
volatility is not significant. Furthermore, negative relationships between firm size and
asset growth with share price volatility are recorded. Moreover, the positive relationship
between earnings volatility and long-term debt with share price volatility are obtained.
Among these relationships, dividend payout ratio, firm size, and earnings volatility have
the strongest impact on share price volatility. | en_US |
