Ownership concentration and dividend policy : Case study of non-financial listed company in Viet Nam

Abstract

The present study aims to determine the impact of ownership concentration on dividend policy on Vietnam stock market in 2011.

The study sample consisted of 357 firms listed in Vietnam stock markets (HOSE and HNX) in 2011. In order to achieve the objective of the study, annually dividend and reports were collected. The OLS regression model was used to test the study hypotheses for level of dividend payout. The variable for this study include dividend payout as representing for dividend policy; ownership concentration measured by Herfindahl index; growth of sale, ROA, leverage and size as control variables. Results show that ownership concentration is positive on dividend policy but not significantly. The growth of sale positively related to dividend policy while there is significantly negative association between leverage, ROA and size with dividend policy.