Determinants of dividend policy - The impact of ownership structure on dividend policy of contruction material industry in Hose and HNX

Abstract

This study examines the impact of ownership structure on dividend policy of construction material listed firms on Ho Chi Minh Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX) over the period of 5 years from 2010 to 2014 based on pooled OLS regressions. The relationship between ownership structure and dividend policy can be seen as a controversial topic which attracts a huge number of researchers in corporate finance field. The finding in this study suggests that firms with high level of state ownership relative to lower debt ratio, lower business risk and high profitability have a tendency to pay more dividends while firms with high level of private ownership prefer to pay less dividends for their shareholders. Additionally, the final result of this research can result in the conclusion that due to the weak corporate governance as well as the loose corporate management, ownership structure does not show a strong correlation with dividend policy in Vietnam market.