| dc.description.abstract | The COVID-19 pandemic has engendered profound alterations in the lives and
business operations of enterprises. The disruption of global supply chains has rendered
companies reactive in their production and commercial activities, thereby impacting
firms’dividend policy. The objective of this research is to present evidence on the influence
of ownership structure on the yearly dividend policies of manufacturing firms listed on the
Ho Chi Minh City Stock Exchange (HOSE) between 2018 and 2022. I examine the
ownership structure variables in terms of the proportion of state shareholders, and the
proportion of foreign shareholders. The data set is constructed from the annual reports of
233 companies over five consecutive years and performed a Tobit regression model (also
known as censored regression). A robustness test was conducted to enhance the reliability
of the model, with the dependent variable being the dividend payment decision. The study's
findings furnish empirical support for a research hypothesis, the proportion of government
shareholders exerts a positive influence on the dividend payout ratio. This indicates that
foreign shareholders do not have compelling reasons to actively engage in monitoring the
company, and therefore they demand a higher dividend payout in order to reduce potential
agency costs - the costs that arise from the potential misalignment of interest between
management of company and the shareholders and compensate for the risks they bear.
Additionally, companies with a higher percentage of state ownership tend to pay higher
dividends which signal positive operational performance to attract additional investment
capital and enhance the credibility of the state. | en_US |
