| dc.description.abstract | Since Miller and Modigliani (1961) demonstrated the theory that dividend policy has no impact
on firm value under perfect financial market conditions, a slew of theoretical Experiments have
been conducted to confirm this theory and identify the circumstances in which dividend policy has
an impact on firm value. However, empirical research on the relationship between dividend policy
and business value has yielded mixed findings (Bhattacharyya, 2007) studies in the Vietnamese
setting.
There has also been research on the influence of dividend policy on business value, however the
results are not consistent; for example, Do and Luu (2018) found negative results, whereas Mai
and Vuong (2017) and Dang and Pham (2015) found favorable ones. This study intends to examine
the link between dividend payment policy and listed business valuation in Vietnam, adding to the
wealth of empirical material already available.
A dividend policy specifies how retained earnings and dividend payments to shareholders are
distributed. Dividends give investors with a current payment while retained earnings provide them
with a source of possible future profit growth through reinvestment. It decides how much of the
company's after-tax earnings will be dispersed, how much will be retained for reinvestment, and
how much will be paid out in dividends to shareholders. A reasonably steady dividend policy is
preferred by most enterprises and shareholders. Maintaining cash dividend payments from period
to period defines stability. As a result, dividend increases are sometimes postponed until the CFO
decides that future profits are sufficient to justify a higher dividend distribution. | en_US |
