| dc.description.abstract | This study examines how and to what extent profits development, rate of paid
dividends, dividends development, and unsystematic risk have influence on Price
Earnings ratio. With the past literature of Price-Earnings ratio, profits development, rate
of paid dividends, dividends development, and unsystematic risk have both significant
and insignificant effects on Price-Earnings ratio. A sample of 1,285 was selected from
257 different non-financial companies in HOSE, a Vietnamese Stock Exchange and
tested in quantitative method, particularly the cross-sectional time-series method. The
results indicate that two of four independent variables (Dividend payout ratio and
Unsystematic risk) result in a significant correlation with the Price-Earnings ratio. Of
which, the Dividend payout ratio gives a positive correlation whereas a negative one
belongs to Unsystematic risk. That is, the amount of paid dividend and the percentage
changes in earnings per share will play a vital role in identifying stock price and then,
Price-Earnings ratio. Academically, this paper offers an opportunity to further studies of
the Price-Earnings ratio in Vietnam by testing effects from other factors like inflation,
interest rate, firm size, and so on. Practically, these findings give investors and related
participants a hand to keep an eye on the changes in the Dividend payout ratio and
Unsystematic risk to anticipate the stock price, which is an advantage for traders to get
profits. All of those will be informatively discussed in the final chapter. | en_US |
