The Impact Of Dividend Policy And Ownership Structure On Stock Price Volatility: Empirical Evidence In Vietnam

Abstract

This study investigates the effect of dividend policy and ownership structure on volatility in stock price in Viet Nam. The study utilizes a panel dataset comprising non financial firms listed on the Ho Chi Minh Stock Exchange (HOSE) and Ha Noi Stock Exchange (HNX) between 2015 and 2022. The findings show that dividend policy, ownership structure, and volatility in stock price all have substantial correlation. Regarding dividend policy, the study finds a positive correlation between a higher dividend yield and volatility in stock price. However, the influence of the dividend payout ratio on stock price volatility was inconclusive, indicating that its impact may vary. Moreover, the findings reveal that foreign ownership tends to stabilize stock prices, while state ownership leads to higher levels of stock price volatility. Additionally, the findings suggest an inverse relationship between firm size and volatility in stock price, implying that larger firms experience lower volatility. On the other hand, the debt structure of firms shows a positive correlation with volatility in stock price in the Vietnamese market.