Ownership and identities of the largest shareholders and dividend policy: Evidence from Vietnam

Author

Trien Vinh LE, University of Economics Ho Chi Minh City
Trang Huyen LE, Singapore Management UniversityFollow

Publication Type

Journal Article

Version

acceptedVersion

Publication Date

1-2017

Abstract

This study investigates the relationship between the level of shareholdings and identities of the largest shareholders, and cash dividend policy. The study is conducted with a sample of 180 firms listed on Vietnam stock exchange markets from 2009 to 2013. The fixed effect model is employed to analyze the balanced panel data. The results show that the higher the level of holdings by the largest shareholders, the lower the dividend payout. Moreover, companies with the State and Foreign investors as the largest shareholders have higher dividend payout ratio than companies with local investors and managers as the largest shareholders. The study also finds that companies tend to pay higher dividends when profits decrease or growth opportunities increase.

Keywords

Largest shareholder, shareholder identity, dividend policy, privatization, Vietnam

Discipline

Accounting | Asian Studies | Corporate Finance

Publication

Organizations and Markets in Emerging Economies

Volume

8

Issue

1

First Page

86

Last Page

104

ISSN

2029-4581

Publisher

Vilnius University

Citation

LE, Trien Vinh and LE, Trang Huyen. Ownership and identities of the largest shareholders and dividend policy: Evidence from Vietnam. (2017). Organizations and Markets in Emerging Economies. 8, (1), 86-104.
Available at: https://ink.library.smu.edu.sg/soa_research/1644

Copyright Owner and License

Authors

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.