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.