Title: THE IMPACT OF CASH DIVIDEND PAYMENTS ON THE FIRM VALUE OF LISTED MANUFACTURING FIRMS IN VIETNAM’S STOCK MARKET
Authors:
Phuong Anh Tran, Tra My Nguyen, Xuan Mai Bui, Xuan Hong Nguyen, Long Vu Hoang*, Thi Thanh Huyen Dam and Thi Thu Hang Nguyen
Abstract:
This study examines the impact of cash dividend payments on the firm value of listed manufacturing companies in the Vietnam Stock Market. Using panel data of 102 companies listed on the Ho Chi Minh City Stock Exchange (HOSE) from 2014 to 2023, the research employs Ordinary Least Squares (OLS), Fixed Effects Model (FEM), and Random Effects Model (REM). The FEM is chosen as the most appropriate model after conducting various tests. The results show a negative relationship between cash dividend payments and firm value, suggesting that retaining earnings for reinvestment may be more beneficial for long-term growth. Control variables include return on equity (ROE), return on assets (ROA), liquidity (LIQ), firm size (SIZE), price-to-book ratio (P/B), price-to-earnings ratio (P/E), and revenue growth rate (GROWTH). These findings contribute to the ongoing debate on dividend policy and offer practical implications for listed manufacturing companies in Vietnam.
Keywords: Cash dividends, Firm value, Manufacturing companies, Vietnam stock market, Panel data, Dividend policy.
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