TAILIEUCHUNG - Impacts of dividend policy on prices of stocks of Vietnamese firms

The paper aims at clarifying effects of dividend policy on market prices of Vietnamese firms reflected in changes in the stock prices after dividend payment is declared. To determine whether the current dividend policy is suitable or not, the paper also examines connections between dividend policy and internal factors of the firm. | ECONOMIC DEVELOPMENT No. 207, November 2011 IMPACTS OF DIVIDEND POLICY ON PRICES OF STOCKS OF VIETNAMESE FIRMS by Dr. TRAÀN THÒ HAÛI LYÙ* The objective of decision to pay dividend as well as other financial decisions is to maximize the firm value. Under normal conditions, this objective may be realized by increases in the firm stock price. The paper aims at clarifying effects of dividend policy on market prices of Vietnamese firms reflected in changes in the stock prices after dividend payment is declared. To determine whether the current dividend policy is suitable or not, the paper also examines connections between dividend policy and internal factors of the firm. Keywords: Dividend, dividend policy, stock prices, internal factors 1. Introduction The objective of financial decisions in general, and decisions on dividend policy in particular, is to maximize values of the firm value and owners’ assets. Under normal conditions, this objective may be realized by increases in the stock price caused by decisions to pay dividend. This is a great challenge to the firm managers because there are different and even contradictory arguments about impacts of dividend policy on the firm value. Generally, these arguments either support or refute such impacts. - Dividend policy has no effect on the firm value: In 1961, Merton Miller and Franco Modigliani (M&M) publicized their theory, that is, dividend policy has no effect on the firm value. 54 RESEARCHES & DISCUSSIONS Their theory is based on three important assumptions: an efficient capital market, the rational behavior of investors and the absence of asymmetric information. An efficient capital market implies the absence of taxes, transaction costs, agency costs, and difference in terms of taxes between dividend and capital gain. Investors’ rational behavior means that investors want to maximize their asset value without wondering if it comes from dividend or capital gain. The absence of asymmetric information implies .

• Đầu tư Chứng khoán
• Dividend policy
• Stock prices
• Internal factors
• Stocks of Vietnamese firms
• Internal factors of the firm
• Dividends and Payout Policy
• Dividend Payments
• Dividend Theory
• Low Dividend Payout
• High Dividend Payout
• Dividend Policies
• UK and bangladesh based companies
• While growth affect positively
• The dividend policy of UK
• Determinants of dividend policy
• Dividend payout ratio
• Payout policy
• Fixed effect model
• Random effect model
• Dividend Payout Policy
• Nonfinancial Listed Companies in Vietnam
• Linter model
• Firms in Zimbabwe
• Corporate dividend policy under hyperinflation
• Dollarization by firms in Zimbabwe
• Bank specific factors
• Oil price
• Oil price on dividend policy
• Dividend yield
• Insurance companies
• Payout ratio
• Share price volatility
• Determinants of dividend payments of Non financial
• Ho Chi Minh stock xxchange
• Dividend policy listed companies
• Among accommodation services
• Electronic industry
• Debt ratio
• Electronic industries of Taiwan and US
• Influences of internationalization
• Dividend among the electronic industries
• Signaling theory
• Corporate operating characteristics
• Dividend policies signal
• Payment of dividends provides information
• Essays
• thesis
• internship reports
• project course
• graduate thesis
• Financial management
• Fundamentals of financial management
• Financial statement analysis
• Irrelevance of dividends
• Financial environments
• Quantile regression
• Variation of stock prices
• Vietnamese stock market
• Employing ordinary least squares
• Private sector banks in India
• Evaluation of dividend policy
• Selected public and private sector banks
• Board of Directors
• Profitable future investment proposals
• Summary of Phd thesis
• Investor sentiment
• Earnings quality
• Evidence from Vietnam
• Summary of the Doctoral thesis
• Dividend policy of listed seafood companies
• Listed seafood companies
• Stock market
• Finance accounting and Auditing
• Corporate value
• Tobin's Q
• GLS model
• Tax Influence Theory
• Business results
• Fair value
• Financial asset
• Corporate finance
• Essentials of corporate finance
• Business finance
• Business organisation
• Fundamentals of corporate finance
• Tài chính doanh nghiệp
• Business organization