Impact of Dividend Policy on Variation of Stock Prices: Empirical Study of Vietnam

Hung, Dang Ngoc; Tran, Binh Minh; Manh, Dung Tran

doi:10.33301/2019.jed.spi.07

Cited by 7 publications

(6 citation statements)

References 9 publications

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“…This means that the ups and downs of shares will also be in line with the performance of issuers (Pernamasari et al, 2020). In line with the findings of Ngoc Hung et al (2019), stock price variations cannot be separated from dividends, so this relationship can be used to adjust stock risk to attract investors. On the investor side, these results help investors have real insight into stocks.…”

Section: Share Price and Companymentioning

confidence: 82%

“…In a company's economic turnover, stocks have price variations which are indicators of risk measurement and affect firm value. Share price variations are significant for company management and also investors (Ngoc Hung et al, 2019). This share price is formed from the capital market and is determined by several factors (Zhu et al, 2012).…”

Section: Share Price and Companymentioning

confidence: 99%

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Dividend as a Moderation Variable to Increase Stock Prices

Yuliana,

Indiyanto,

Yusuf

et al. 2021

J. Keuang. dan Perbank.

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One of the strategic decisions in the company is related to dividend decisions. It becomes the basis for investors to invest in shares. Investors value income from dividends distributed by companies for more than income from capital gains. Investors prefer to receive payment now than future ones because they are faced with uncertainty. Regular dividend distribution indicates the company has bright prospects in the future. Accordingly, Dividends have a significant influence on the increase in share prices. Data were collected using the documentation method of 34 samples of the most liquid Islamic stocks listed on the IDX. This research uses the SPSS analysis technique and uses a partial test (t-test). The tests to determine the significance of each independent variable in influencing the dependent variable with a one-way test and using moderation regression to test and analyze the effect of dividends per share on stock prices, whether to strengthen/weaken the dependent variable. The study results found that profitability and solvency , as well as dividends, have a relationship with stock prices. The relationship between ROA and share prices as moderated by dividends is negative for stock prices. The relationship between ROE and share price, which is moderated by dividends, is positive but not significant. Dividends can significantly strengthen the DER relationship to the share price. In addition, dividends were able to strengthen DAR's relationship with share prices significantly.JEL: G11, G12, G41

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Section: Share Price and Companymentioning

confidence: 82%

Section: Share Price and Companymentioning

confidence: 99%

Dividend as a Moderation Variable to Increase Stock Prices

Yuliana,

Indiyanto,

Yusuf

et al. 2021

J. Keuang. dan Perbank.

View full text Add to dashboard Cite

show abstract

“…In particular, the study examined dividend policy according to the potential effect of the financial structure decision, firm performance, and governance indicators, with a greater concentration on leverage as a measure of the financial structure decision. Based on prior research on dividend payments, the study used pooled ordinary least squares (OLS), which is employed frequently to identify the variation nexus between dividend policy and the financial structure decision, as well as consider other dividends' determinants, such as firm performance and governance indicators (see Baskin 1989;Becker et al 2011;Ghasemi et al 2018;Dang et al 2019). Hence, the following equation presents the linear regression model:…”

Section: Model Specificationmentioning

confidence: 99%

“…The main purpose of quantile regression is to estimate parameters on each of the dependent variable's quantiles. Thus, this method shows the independent variables' influence on each of the dependent variable's quantiles, rather than testing the independent variables' influence on the dependent variable's mean value, as in OLS (Dang et al 2019). This study relied on the multiplicative model that is designed to consider the heteroscedasticity and simultaneity generated.…”

Section: Model Specificationmentioning

confidence: 99%

“…2018; Dang et al . 2019). Hence, the following equation presents the linear regression model:

{italicDividend}_{italicit} = β_{0} + β_{1} leverage + β_{2} profitability + β_{3} firm size + β_{4} connection + β_{5} compensation + β_{6} board size + β_{7} duality + β_{8} education + β_{9} age + ϵ_{italicit}

In which

{italicDividend}_{italicit}

is the dependent variable and refers to dividend payments for firm

i

at time

t

.…”

Section: Model Specification Variable Selection and Datamentioning

confidence: 99%

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The Effect of the Financial Structure Decision and Governance Mechanism on Shareholders' Wealth: Nonlinearity Evidence from a Petroleum‐based Economy

Shaddady

2022

Asia-Pac J of Fin Stud

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This study was designed to determine the nature of the association between the financial structure decision and shareholders' wealth—dividend payments—of firms listed on one of the largest stock markets in oil‐based economies, the Saudi stock market. The study used panel data for all nonfinancial firms listed in Saudi Arabia's primary stock market (TASI) during the period from 2000 to 2018. The pooled ordinary least squares, quantile, generalized method of moments and U‐tests were conducted to evaluate the association between the financial structure decision and dividend payment. The preliminary findings revealed a positive effect of financial leverage on dividend payments using a linear model. However, when a nonlinear model was used, the study found a nonlinear relation between the financial structure decision and dividend payouts, which exhibited an inverted U‐shaped curve driven by levels of debt. This nonlinear relation verifies the tenets of the trade‐off theory of optimum debt level based on the costs and benefits of the debt. Further, the study found a negative influence of firm performance, size, and age on dividend payments. The outcomes of this study may provide useful insights for policymakers, managers, and lenders into the optimal level of financial leverage and efficient dividend policies.

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The impact of business intelligence systems on profitability and risks of firms

Yiu

Yeung

Cheng

2020

International Journal of Production Research

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Researchers in the field of operations management (OM) have long advocated fact-based decisionmaking. The use of business intelligence (BI) systems represents a great opportunity for manufacturers to improve profitability and reduce firm risks. However, the actual business value of BI systems has remained highly controversial because integrating BI systems into production and manufacturing operations is difficult. In particular, the informational sources and operational use of BI systems require substantial internal support from employees and institutionalized incorporation of BI into operations. Using a sample of 278 manufacturing firms in the US that had used BI systems from 2005 to 2014, we examine the impact of BI systems on firms' profitability and risks. We show that firms improve their profitability and reduce risks in profit returns directly after the operational use of BI systems. Firms with superior employee relationships and higher process institutionalization (i.e., firms that are ISO 9000 certified) benefit more from the operational use of BI systems. We provide a resource orchestration perspective (ROP) of the resource-based view (RBV) of firms for the competitive advantage derived from the operational use of BI systems; and we ascertain the circumstances in which manufacturers are more likely to benefit from BI systems.

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Impact of Dividend Policy on Variation of Stock Prices: Empirical Study of Vietnam

Cited by 7 publications

References 9 publications

Dividend as a Moderation Variable to Increase Stock Prices

Dividend as a Moderation Variable to Increase Stock Prices

The Effect of the Financial Structure Decision and Governance Mechanism on Shareholders' Wealth: Nonlinearity Evidence from a Petroleum‐based Economy

The impact of business intelligence systems on profitability and risks of firms

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