Effect of dividend policy on stock price volatility - A study in listed companies on Ho Chi Minh stock exchange
Abstract
The principle motivation behind this paper is to figure out if the dividend
policy is significant or superfluous by looking at the impacts of dividend policy on stock
value unpredictability of listed companies on the Ho Chi Minh Stock Exchange (HOSE).
The dividend policy is measured with two variables (dividend payout ratio and dividend
yield ratio) which are considered as independent variables. Control variables taken to test
this linkage include profitability, leverage size growth. The findings show significant
relationship between dividend policy and stock price volatility. It is suggested that
because the results are not true for every situation, companies then need to consider
every aspect of firms’ and economic status before deciding which method they should
follow.